How To Trade Options Investing Strategies August 2014

How To Trade Options

Investing Strategies Newsletter 

August 25, 2014

Market Strategies Newsletter

Sample Issue

How to trade binary options

Where To Invest $10000


Covering High Return Balanced Stock Market

Investing Strategies To

Make Money In Up Or Down Markets


Over 284% Gains In 2013


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How To Trade Options

Options Trading Investing Strategies September 2014


In 2013 YTD gains were $28,479

Over 284% Returns

A $10,000 Portfolio would be worth $38,479


The last 3 years our gains have gotten progressively greater year over year.


284% Returns for $28,400 Profits In 2013

171% Returns for $17,100 Profits In 2012

77% Returns for $7,700 Profits In 2011 (only 33 weeks)


NOTE: This is a Sample Issue Only!






What Should I Invest In


Balanced Investing Strategies

Options Trading Tops Binary Trading


Market Strategies

$10,000 Trading Account

Traders Comments

There are 2 Open Positions:


P September 29 Calls

WFM September 39 Calls


Funds in Use $ 2984


Loss for the week $180


Gain for the Year $7254


Over 72% Returns


We had a small loss this week but also closed the week with equity above costs on most positions.  The activity was marked with both 100% Up Rule and 50% Down Rule liquidations.


The loss was only $180 bringing out YTD gains to $7,254 with the biggest exposure of recent days of $2,984. 


I will be very quick on the trigger if we start to see the geopolitical situations start to effect us.


It’s one thing to be the best house on a bad block, but eventually even your equity starts to slip.  There are many stocks that are really historically cheap, like XON or others with both fairly low P/Es and a strong yield while you wait.

It is those that will still fall in a bad market but will still perform “relatively” better.

The “Black Swan” issues are unknowable and as I’ve said here before are generally the ones we aren’t already losing sleepover.  Here’s a new one that I’ll bet wasn’t on your radar….”Icelandic volcano could signal a replay of 2010 global travel chaos.” In 2010 the smaller of the two main volcanoes erupted and caused the biggest airspace shutdown since WW II…..


I will be traveling from midday Monday thru Tuesday night, so I will try to put out some stops via the Free Texting service tomorrow (Monday)..  Futures are barely changed tonight so unless there is some overnight news of substance I would expect a slow start to another slow week.



Options Trading


Market Strategies $10,000 Trading Account

Trade Table

08/21 Sold 10 XLF Sept 23 Calls ( 100% profit Rule ) 0.36 360 180 Gain
08/21 Sold 10 SPY Aug 29th 197 Puts ( 50% Loss Rule ) 0.36 360 360 Loss
08/20 Bought 6 LVLT September 43 Calls 0.90 540
08/20 Bought 4 GNRC September 47.50 Calls 0.75 300
08/20 Bought 8 FCX September 37 Calls 0.58 464
08/19 Bought 10 SPY August 29th  197 Puts 0.72 720
08/19 Bought 4 V September 220 Calls 1.58 632
08/18 Bought 20 XLF September 23 Calls 0.18 360
08/15 Bought 2 P September 29 Calls 1.55 310
08/15 Bought 6 WFM September 39 Calls 0.93 558
08/15 Sold 7 SPY August 193.50 remaining 2.97 2079 1428 Gain
08/13 Sold 8 SPY August 193.50 Calls ( 7 left open ) 1.74 1392 648 Gain
08/12 Bought 15 SPY August 193.50 Calls 0.93 1395


Remember, these trades are based on your participation in the

Subscriber Members Only


Previous closed out trades not listed here may be seen in previous market letters in the VIP Subscribers Members Area.


Options Trading Strategies Notes: In Texting we have a limited amount of words. In the interest of brevity: we use 8=August , 9=September . The Quantity and Strike Price for each trade is specific.

We may trade weekly options and they are noted: SPY 1/25 147 for SPY Jan 25th 147 calls or puts.


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Investing Strategies


MARKET Laboratory – Weekly Changes

Prices are copied from Barron’s Weekly and Yahoo Finance and may be incorrect

S&P 5001988.40+33.34+1.71% Transportation8429.91+165.79


Russell 20001160.34
Nasdaq 1004052.75+65.24


Gold (spot)1278.60-25.90


Silver (July)1938.6-13.9




Heating Oil283.43-1.99


Unleaded Gas2.5889-0.1097


Natural Gas3.840+0.064


VIX11.47-1.68-12.8% Put/Call RatiosS&P 100



Put/Call RatiosCBOE Equity



Bonds140-14 -193.18% +0.02% 10 Yr. Note125-284 -242.39%+0.02% Copper320.45+10.15


CRB Inflation Index288.67



Barron’s Confidence68.6%-0.8% S&P100882.79+14.52


5 Yr. Note119-134 -181.63% +0.07% Dollar82.33+0.90


DJ Utilities555.25+6.44




Bullish46.1%+6.3% Bearish23.7%-3.3% Neutral30.2%-3.0%


M1 Money  Supply+11.28%

August 11th

M-2 MoneySupply+6.18%

August 11th

M1…all money in hands of the public, Time Deposits Traveler’s Checks, Demand Deposit

M2.. adds Savings and Money Market Accounts both compared with the previous year.


Market Strategies Technical Information

Support Levels S&P 500    1958

Resistance S&P 500           1998


Support Levels DOW          16,770

Resistance DOW                 16,998


Support Levels QQQ           98.90                  

Resistance QQQ                  99.85


Support Levels NASDAQ      4460

Resistance NASDAQ             4688


Top Stocks To Buy


New Stock Recommendations $100,000 Portfolio

 Each stock is allocated a theoretical $ 5,000 share of the portfolio unless otherwise indicated.

Stock Purchase Price Purchase Date Stop/Loss   Price/Date Sold   Profit/(Loss)
GALE 1500 3.05      08/11
GRPN  500 6.35      07/31
WFM  150 37.08      07/24 8/15 38.54 $ 219
MBI   500 9.54      07/14 7/25 10.02 $ 240
BCRH 300 19.45      07/10 17.55sco
MVIS 2000 2.02      06/30 1.87sco 07/15 2.40 $ 760
NBG 300   2.95      05/19
GLXZ 5000 0.46      05/12
XRGYF 5000* 0.407      03/14
OSIR 300 15.94      02/13
GRPN 500 10.40      01/28
RPTP 400 15.37      01/16
AA 300  100Sold  200 10.06      01/10 6/26 14.87 $ 854
WLT 300 16.22 12/23
GSG 150 32.64 12/23 32.21 sco
NBG 300 4.08 8/12
TEXQY* 200 6.56 7/11
NBG 300 12.10 5/23
HL 1000 4.10 3/04 2.64 sco
AAPL 35 76.85 11/08/12
REPR* 5000 0.22 10/22/12 .12 sco

Recommendations will be both listed in this letter and texted to members.

Previous closed out stock and option positions can be found in past Market Strategies Newsletter issues available in the VIP Subscribers Members Area.

Subscriber Members Only




NOTE: This is a Sample Issue Only!






Good Stocks To Invest In


Market Strategies $100,000 Trading Portfolio

Recommendations And Overall Comments

There were two closed out option positions last week making a loss of $ 360 last week.


For the full year now we have gains of $ 23,783.


For the full year 2013 we had realized gains of $ 53,556.


We have open position losses now of about $ 10,931.00 some of which are in coal stocks, NBG and small cap bio-med stocks held over from last year.


We also have not counted dividends received on stocks like Apple, Nordic American (NAT), BCRH and JP Morgan.


The Stock table has the following 17 positions:


AA, AAPL,BCRH,  GALE, GRPN (2) , GSG,  HL,  NBG (3),



The options call for a $ 2,500 investment unless otherwise stated; each stock position requires $5,000 unless specifically stated.


We are basing money management on a hypothetical

$ 100,000 and are using

$ 59,661 in 17 stock positions plus

$ 5,968 in seven options positions totaling

$ 65,629 with

$ 34,371in cash.

These figures are approximate. We do not count commission costs and there may be errors.


Executions that have occurred at or near the open or close of trading sometimes vary from our actual numbers.  For example, when something opens down and it is through our price, we take the next trade whether it is an uptick or continues lower.  This sometimes results in a 50% trade that is slightly above or below the exact number.


Best Investments For 2014


Previous Week’s Recommendations and

Rules for the Market Strategies

$100,000 Portfolio Trading Account


  • All options count for about $ 2,500.00 for model portfolio calculations unless otherwise stated
  • When the option has doubled sell half the position
  • Stop Loss protection is either half or offered with each trade
  • The cost of the option is the asking price (or the price between the bid and ask, whichever is more realistic)
  • The options will be followed until closed out.
  • Option Symbols are stock symbol with expiration month and strike price
Option Cost Date Sold Date Profit/(Loss)
LVLT Sept 4312 lots Calls0.90 08/20/14
GNRCSept47.508 lots Calls0.75 08/20/14
FCX Sept 3716 lots Calls0.58 08/20/14
SPY Aug 29th 19720 lots Puts0.72 08/19/14 0.36(50% Loss Rule 08/21/14 ( $ 720.00 )
V Sept 2208 lots Calls1.58 08/19/14
XLF Sept 2340 lots20 Open Calls0.18 08/18/14 0.36(half on 100% Profit Rule ) 08/21/14 $ 360.00
P Sept 294 lots Calls1.55 08/15/14
WFM Aug 3912 lots Calls0.93 08/15/14


Note: Previous closed out stock and option positions can be found in past Market Strategies Newsletter issues available in the VIP Subscribers Members Area.


NOTE: This is a Sample Issue Only!






This Weeks’ Economic Numbers and Media Data

Monday 10:00 hrs New Home Sales July ( 427K vs 406K )
Tuesday Bank of Montreal ( BMO 1.66 vs 1.68 )  Best Buy ( BBY 0.32 vs 0.32 ) )08:30 hrs Durable Goods Orders( July  7.0% vs 1.7% revised up from 0.7%)

Ex-Transportation  ( 0.6% vs 1.9% revised higher from 0.8% )

09:00 hrs Case-Shiller 20-city Index June ( +8.3% vs +9.3% )

09:00 hrs FHFA Housing Price Index June ( NA vs 0.4% )

10:00 hrs Consumer Confidence August ( 88.3 vs 90.9 )

Wednesday Banco Santander ( SAN: 0.16 vs 0.10 )Brown Shoe ( BWS 0.35 vs 0.33 )Tiffany  ( TIF: 0.85 vs 0.83 ) Yangli Green Energy ( YGE ( -0.12 vs -0.33 )

07:00 hrs MBA Mortgage Index 08/23 ( NA vs +1.4% )

10:30 hrs Crude Inventories 08/16 ( NA vs -4.474 Mln Bbls )

Bally Technologies ( BYI 1.21 vs 0.96 ) Gordmans Stores ( GMAN -0.15 vs 0.05 )

Thursday Abercrombie $ Fitch ( ANF: 0.11 vs 0.16 ) Dollar General ( DG 0.83 vs 0.77 )Genesco ( GCO: 0.55 vs 0.56 ) Toronto Dominion Bank ( TD 1.09 vs 1.65 )

08:30 hrs  Initial Claims 08/23 ( 302K vs 298K )

08:30 hrs  Continuing Claims 08/16  ( 2520K  vs 2500K )

08:30 hrs GDP-2nd Estimate ( 4.0% vs Same )

Implicit Price Deflator ( 2.0% vs Same )

1010:00 hrs Leading Indicators July ( 0.7% vs 0.3% )

10:30 hrs Natural Gas Inventories 08/09 ( NA vs 88 bcf)

Advanced Emissions Solutions ( ADES: 0.04 vs -0.54 )

Friday Big Lots ( BIG: 0.30 vs 0.31 )08:30 hrs Personal Income July ( 0.3% vs 0.4% )

Personal Spending ( 0.1% vs 0.4% )

CORE PCE prices ( No Increase 0.1% )

09:45 hrs Chicago PMI Aug ( 54.8 vs 52.6 )

09:55 hrs Michigan Sentiment August Mo Final ( 80.0 vs 79.2 )


Market Strategies Fundamentals

The S&P had its best week since April making  a new all-time high in line at 1988.40 up from a low of 666.79 in May 2009, and 1216.13 in  November 2011. The forward look continues encouraging, while economic fundamentals domestically have been supportive  notwithstanding  troubled geopolitical events. Housing Starts rebounded; The Philadelphia Fed numbers were in confirmation of an accelerating economy and earnings of large cap companies continued to surprise with the exception of Retail. Both Home Depot and Hewlett Packard reported excellent numbers:

Home Depot  ( HD: $ 91.03 ) + $ 7.34 or 8.8% for the week, earned $1.52/share, better than last year’s $1.24 and beating estimates of $1.44. Top Line Sales grew to $ 23.8B from a $23.6B consensus, even with retarded growth from the Housing sector, while retail in general was lagging. Their competitor, Lowes ( LOW: $ $ 52.55 ) + $ 2.53 or  5.1% also beat bottom line numbers  $ 1.04 earned vs 0.88 expected. Hewlett Packard  ( HPQ: $ 36.84 ) Gained $ 1.77 or  5%;  reported excellent top line numbers, $ 27.585B vs 27.058B and improved their earnings by 3 cents a share to $ 0.89 for the quarter. Conversely, J.M. Smucker ( SJM: $ 101.36 ) Down $ 1.51 or 1.5% on the week,. Staples, Inc  ( SPLS: $ 10.94 ) – $ 0.50 or 4.8% both continue to show the  weakness in consumer spending .

The Jackson Hole, Wyoming symposium featuring Fed Chairlady Janet Yellen and ECB president Mario Draghi failed to produce anything new to the markets. Neither of their speeches revealed anything to cause even a stir. Everything remained “status quo.”

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Market Strategies Economic Data

The strong gain in single-family construction follows improvements in the NAHB Housing Market Index. Construction growth may be more stable than previously thought.

          Category JUL JUN MAY APR MAR
          Starts 1093K 945K 984K 1063K 950K
          1 Unit 656K 606K 634K 649K 635K
          Multi Units 437K 339K 350K 414K 315K
          Permits 1052K 973K 1005K 1059K 1000K


Housing starts increased 15.7% in July to 1.093 mln ( on an annualized basis )  from an upwardly revised 945,000 (from 893,000) in June. The big news was an 8.3% increase, to 656,0000, in single-family construction. New single-family construction levels declined in both May and June after reaching roughly 650,000 in April. Since single family construction trends are typically stable, the two month decline suggested that housing construction was in the doldrums. It is likely that despite onerous obstacles in the form of regulation, that July is the beginning of as new and favorable trend.

Multifamily construction increased  28.9% to 437,000 in July. That was the most new multifamily homes since 450,000 multifamily units were started in January 2006. These levels are not sustainable and will likely decline next month.

The number of units under construction increased 2.9% to 786,000 in July from 764,000 in June. The gain will be a net positive for third quarter GDP, but the contribution to growth may not be as high as the headline suggests. Most of the increase in the number of units under construction came from the multifamily sector (+4.8%), which contributes less to overall construction growth per unit than single family construction.


The Philadelphia Fed Survey skyrocketed to the best levels since 2011.

       Total Index 28.0 23.9 17.8 15.4 16.6
        6-month Outlook 66.4 58.1 52.0 37.4 26.6


The strength in the headline result is confusing and masks an oddly weaker subset of data. Nearly all of the components of the survey declined significantly in August. The only gains – outside of the headline result – came from the average workweek index which increased to 13.3 in August from 12.5 in July and inventories, which rose to 8.3 in August from 4.8 in July.

Given these trends, another increase in the headline outlook in September seems unlikely.

The key production components all returned to June levels. Shipments growth slowed as the related index fell to 16.5 in August from 34.2 in July. The drop in shipments corresponded with a sharp reduction in new orders growth (14.7 from 34.2).

Future production growth will be highly reliant on a new orders growth. Unfilled orders contracted in August as the related index fell to -4.1 from 9.1 in July.


Best Stocks To Buy Now


Penny Stocks To Buy


Undervalued Small Cap Stocks


Target Energy* ( TEX.AX  0.045-5  Australia ), In the USA, ( TEXQY: $ 4.50 ) a new AD

This company has been trading up with volume. Management is extremely talented but at the same time very conservative in their disclosures of drilling successes and future opportunity.


The company  could easily earn a nickel a share ( Australian ) just above the Bid where it is trading.

It would be logical for a much higher share value Perhaps 7 to 10 cents is in the picture this year ending in June 2015. Aurora Energy Partners associated with Victory Energy ( VYEY: )is a believer; they just paid $ 6 million for a 10% interest in its Fairway Project in the Permian.


Leo Motors ( LEOM $ 0.075 )*

Has merged with LGM, a potential to be the Tesla of Asia. We like it now, above its 13-day moving average. Please go to ( English Version ) Risk is 3 cents.


Go to ( English Version ) They have many innovative technologies.


Cleveland BioLabs, Inc ( CBLI $ 0.43 )*

Want to buy a close above $ 0.43. CBLI  is an innovative biopharmaceutical company seeking to develop first-in-class pharmaceuticals designed to address diseases with significant medical need.


The company’s lead product candidates are Entolimod, which is being developed as radiation countermeasure and a potential cancer treatment, and Curaxin CBL0137, our lead oncology product candidate. The company conducts business in the United States and in the Russian Federation through our three operating subsidiaries, Incuron, LLC, BioLabs 612, LLC and Panacela Labs, Inc.


The company maintains strategic relationships with the Cleveland Clinic, Roswell Park Cancer Institute, and the Children’s Cancer Institute Australia.


To learn more about Cleveland BioLabs, Inc., please visit the Company’s website at


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Market Strategies Cycles

Exxon Mobil is a good-looking opportunity to buy at its 50 day moving average or $ 95/share.

Exxon Mobil is developing more than 120 projects that represent about 24 billion oil-equivalent barrels of oil and gas. These include a liquefied natural gas project, LNG, in Papua New Guinea to develop some 9 trillion cubic feet of gas for the energy-hungry Asia-Pacific region, and nine other major projects that Exxon Mobil has either begun producing or plans to bring on-stream this year. During the next three years, production at another 11 major projects is likely to commence as per company projections. Consequently, one million net oil-equivalent barrels per day of production capacity by 2017 is also anticipated. Enhanced income in projects like this can allay out of the blue bumps during the production processes of oil in the arctic Kara Sea.


The company shipped the first cargo of liquefied natural gas from the Papua New Guinea U.S. $19 billion LNG project ahead of schedule to Japan for Tokyo Electric Power Co. Inc. (TEPCO). The LNG project is expected to produce more than nine trillion cubic feet of gas over its estimated 30 years of operations and exemplifies Exxon Mobil’s leadership in project execution. Presently, gas will be exported as liquefied natural gas to customers around the world. The project is running at full capacity and will produce 6.9 million tonnes of LNG per year. This project is Exxon Mobil’s co-venture with Oil Search Limited, National Petroleum Company of PNG, Santos Limited, JX Nippon Oil & Gas Exploration Corporation, Mineral Resources Development Company (representing landowners) and Petromin PNG Holdings Limited. Hence, would remain an attractive business for the investors.


Stocks to buy in September

These 10 stocks and hedges, some from the “Stock Traders Almanac” ….. all have reasonably solid valuations, healthy revenue and earnings growth, while exhibiting positive price and volume action as well as other constructive technical and chart pattern indications. The group covers a broad array of sectors and industries. It also runs the gamut of market capitalization with a mix of large caps with more than $5 billion in market value, midcaps in the $1-5 billion range, and small caps under $1 billion.

Because this basket is being presented well in advance of the start of the “Best Six Months” (November to April) for stocks, we will look to add these 10 stocks, in the table below, on dips.


Stocks to buy on a September dip:

Symbol Name Business Description PE P/S MV mln Price Buy Limit Stop Loss
APT Alpha Pro Tech Medical  Disposables 18 1.1 5.1 2.59 2.42 2.21
IIIN Insteel industries Metal fabrication 29 0.7 411 22.44 21.22 18.50
KR Kroger Retail Food 17 0.24 24.6K 50.30 48.90 46
XOM Exxon Mobil Energy 13.4 1.1 420K 98.50 95.40 89
UAL United Cont Hld Transportation 16 1.2 18.1K 48.46 46 43
CAT Caterpillar Construction 18.24 0.46 67.4K 107.31 104.60 101
WFM Whole Foods Healthy Foods 25.7 0.98 13.9K 38.55 37.55 31
VLO Valero Refining 10 0.20 28.4K 53.81 53.30 52
BELFB Bell Fuse Inc B Electronics 9.5 0.74 276 23.26 23 21.50
SPXU Ultra Short S&P Hedge purposes 44.74 43.20 41
VXX VIX Volatility Hedge Portfolio 27.70 27.10 26
SAN Banco Santander World Banking 18 2.73 118.6K 9.75 9.30 8.50

NOTE: This is a Sample Issue Only!






Rule 17B Attestations

Princeton has approximately 2,581,578 shares of AIVN both free and restricted and represents them for I.R.. Princeton also has about 40,000 shares of TXGE. Princeton is paid $ 1,500 per month from RMS Medical Products. Princeton has bought 81,100 shares of RMS Medical Products. Princeton Research has been paid $ 2,500 to write a report on Xinergy.


Princeton has been engaged by Target Energy. No contract is currently in place. When there is no movement in penny stocks, even though there is none or very small losses, we will liquidate ( sold AIVN on stop ) even though we like the company, if money is needed for better opportunities.

We now believe REPR represents upside opportunity. The Target ADR trades at about $ 4.50 in U.S. vs 0.045 in Australia. Princeton owns 400,000 Australia shares and about 500 U.S. ADR’s. Princeton was paid about 500,000 shares of Leo Motors.


Pursuant to the provisions of Rule 206 (4) of the Investment Advisers Act of 1940, readers should recognize that not all recommendations made in the future will be profitable or will equal the performance of any recommendations referred to in this e-mail issue. Princeton may buy or sell its free-trading shares in companies it represents at any time.



Please Direct All Inquiries To:


Mike King

(702) 650-3000


Princeton Research

3887 Pacific Street,

Las Vegas, Nevada 89121




Options Trading Strategies For 2014

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