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Options Trading Newsletter

Where To Invest November 10, 2014

Market Strategies Newsletter

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Options Trading Strategies

Where To Invest Now and

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Options Trade Alerts

Stock Options Trading Newsletter

Options Trading Strategies

How To Trade Options

Stock Options Trading Alerts

Best Stocks To Buy November 2014

Where to Invest November 2014


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Over 144% 2014 YTD Gains


Gain for the Year $ 14,455


$14,455 Profits for $10,000 Trading Account


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Where To Invest Your Money Now March 2014 Market Strategies

In 2013 YTD gains were $28,479

Over 284% Returns

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



Options Trade Alerts

Market Strategies

$10,000 Trading Account Traders Comments


There are 5 Open Positions:


4 FB November 73 Puts

Long 3 LULU November 42.50 Calls

Long 2 PPO November 40 Calls

Short the November PPO 42.50 Calls

Long 20 RWM November 16 Calls


Funds in Use: ( $ 277 Credit )


Gain for the Week $ 1,425

Gain for the Year $ 14,455

Over 144% Returns 2014 YTD



Week 44 produced a gain of $1,425 bringing our YTD gains to a profit of $14,455.


Our funds  in use is actually a credit, but I’ll explain that shortly.  It was another good week and while all of the profits came from the long side of the market I am again VERY wary of what has gone on recently.  This market has turned on a dime several times in the past 2 years and it feels to me like we may be headed in that direction again.


There have been a great many downside surprises that have encountered a vacuum and fallen double-digits. These are not just biotech, but several of the bigger names. MCD and IBM have been victims, falling roughly 14% and 17% respectively.  These are not GTAT or DNDN….they are two of the biggest and most recognizable names in American business.


A look at RSI (relative strength) shows a divergence since July, and as a friend and competitor has pointed out to me, a look at the S&P 500 shows a well defined broadening pattern.  While this pattern isn’t the most reliable, it only has to work once to be an expensive affair.  The pattern portends a “change in trading character” and is generally seen in later stages of primary bull markets.


As to our funds in use number, we have been involved in PPO on the call side.  On Tuesday we sold half of the position on the 100% Up rule.   On Thursday the stock exploded and closed up $10.79.


Since the stock is thinly traded and the options being so deep in the money, it was difficult to find a reasonable bid, so we sold the same month expiration but with a higher strike.  The option with the best bid was the 11/42.50 calls and we sold those for $9.90.


So, this is what the trade now looks like:


Long 2 PPO 11/40 CALLS @ $1.95

SHORT 2 PPO 11/42.50 CALLS @ $9.90


We paid in $390 to own the stock @ 40 (200 shares).  We gave away the rights to the stock @ $42.50 and received $1,980.


Since we own it at $40 and have given away the stock @ $42.50 we have little risk, and we were paid $9.90/ share.


Since we paid in full for the options and we sold the calls with a higher strike price, the $1,980 is Ours to keep.  While the “write” requires a margin account, there is no further requirement of funds, hence we took in more than we needed to cover our positions…


By the way, the reason I used the headline above is that we are locked into an unrealized gain of $2,480 as long as PPO closes over $42.50…LAST TRADE $53.59…….And that does not include the fact that we already took a gain of $450 on the sale of the first half of the position.


As I have mentioned repeatedly in this space, I am wary and have been taking smaller initial positions.  I intend to continue this and for balance I have purchased RWM (reverse Russell2000) calls and some FB puts to maintain some balance for the portfolio.



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Where To Invest $10000

Market Strategies $10,000 Trading Account Trade Table

11/07 Sold 3 LULU November 42.50 Calls( 100% Profit Rule ) 1.90   270        285 Gain
11/06 Bought 4 FB November 73 Puts 1.07 428  
11/06 Sold 2 PPO November 42.50 Calls @ 9.90 for a credit of $ 1980 against long position 9.90  1980  
11/04 Sold 2 PPO November 40 Calls( 100% Profit Rule Plus opening Gap on earnings release )

Leaves 2 lots long

4.20    840        450 Gain
11/03 Bought 20 RWM November 16 Calls 0.30 600  
11/03 Bought 6 LULU November 42.50 Calls 0.95 570  
11/03 Sold 5 DD November 67.50 Calls 1.98    990        690 Gain
10/31 Sold 5 DD November 67.50 Calls( 100% Profit Rule plus gap: Leaves 5 lots long 1.40    700        400 Gain
10/29 Bought 10 DD November 67.50 Calls 0.60
10/27 Bought 4 PPO November 40 Calls 1.95 780

Stock Options Trading Newsletter

Options Trading Strategies

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.


MARKET Laboratory – Weekly Changes

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






S&P 5002031.92






Russell 20001173.32
Nasdaq 4160.50+2.29


Gold (spot)1169.60



Silver (July)1571.4






Heating Oil249.95



Unleaded Gas2.1352



Natural Gas4.412






Put/Call RatiosS&P 100



Put/Call RatiosCBOE Equity




Bonds141-21 +18

3.05% -0.01%

10 Yr. Note126-21+096       2.32%-0.01%





CRB InflationIndex




Barron’s* Confidence79.7%





5 Yr. Note119-182 +045






DJ Utilities603.08












M1 Money  Supply+7.38%

October 27th

M-2 MoneySupply


October 27th



* Component Change in the Confidence Index


M1…all money in hands of the public, Time Deposits Traveler’s Checks, Demand Deposits
M2.. adds Savings and Money Market Accounts both compared with the previous year.

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Market Strategies Technical Information

Support Levels S&P 500        1982

Resistance S&P 500              2064


Support Levels DOW          17,278

Resistance DOW                17,725


Support Levels QQQ            99.60

Resistance QQQ                  102.90


Support Levels NASDAQ      4560

Resistance NASDAQ            4695



$100,000 Trading Portfolio Stock Positions and

Stocks To Buy

1) Buy 400 Canadian Oil Sands ( COSWF )  $ 15.48 

2) Buy 200 Contango Oil and Gas MCF @ $ 36.65                     

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)
JBLU 500 11.74      11/03
AA  500 14.21      10/16
AAPL 20 97.68      10/15
FCX 150 34.99      09/09
NBG 300   2.95      05/19
XRGYF 5000* 0.407      03/14
RPTP 400 15.37      01/16
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
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.


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 newsletters in the VIP Subscribers Members Area.

For those of you who do not buy puts to protect your portfolio, there are many ETF’s that are the inverse of the DOW. The symbols are DOG, DXD, SDS,TZA and RWM, which go up when the  DOW, S&P 500 and Russell 2000 go down and down when they go up. The DZZ goes up double when gold goes down.


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How To Trade Options

Stock Options Trading Alerts

Investing Strategies Summary


There were six closed out long option positions and

two written Calls last week with a

gain of $ 2,850


There were no closed out stock positions.


For the full year to date we have gains of $ 39,503


Profits were substantial, while open position losses were reduced to $5,131.00.


The Stock table has the following remaining 13 positions:




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

$40,887 in 13 stock positions and two written call options with

$ 59,113 in 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 Stocks To Buy November 2014

Where to Invest November 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)
FB Nov 73

8 lots



PPO Nov 42.50

Shorted 2 lots against Long position




11/06/14 42.50 Written Calls $ 3960 Credit
LULU Nov42.50

6 lots Remain



11/03/14 1.90

( 100% Profit Rule Sold Half )

11/07/14 $ 570
RWM Nov 16

20 lots



RPTP Nov 10

Shorted against long stock position




4 open

11/10/14 1.40

( shorted against long position

Written Calls $ 560 Credit
DD Nov 67.50

20 lots

10 lots remain



10/29/14 1.40

( 100% Profit Rule sold half plus Gap

1.98 Sold Balance





$ 800



$ 1380

PPO Nov 40

8 lots

4 lots Remain



10/27/14 4.20

( 100% profit Rule Sold Half Plus Opening Gap

11/04/14 $ 900
DD  Nov 67.50

4 lots left




10/13/14 2.10

( 100% profit rule  sold half )

1.45 Sold Balance




$ 436


$ 176

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

Options Trade Alerts

This Weeks’ Economic Numbers and Media Data

Monday Earnings Reports

Before the Open:

3 D Systems ( DDD 0.17 vs 0.26 )

Dean Foods  DF -9.13 vs 0.12

Trans Ocean ( RIG 0.85 vs 1.37 )


 After the Close:

Magic Jack ( Call 0.14 )

 TuesdayDR Horton ( DHI 0.48 vs 0.40 )


08:30 hrs Trade Balance Sept ( -$42.0Bln vs -$40.1Bln )

10:00 hrs Factory Orders Sept -0.5% vs -10.1% )


Fossil ( FOSL 1.82 vs 1.58 )

Noah Holdings ( NOAH 0.35 vs 0.27 )

 WednesdayBeazer Homes ( BZH 1.00 vs 0.36 )

Canadian Solar ( CSIQ: 1.14 vs 0.56 )

Macy’s ( M 0.51 vs 0.47 )

Rockwell Automation ( ROK 1.82 vs 1.62 )


07:00 hrs MBA Mortgage Index 11/08 ( NA vs -2.6% )

10:00 hrs Wholesale Inventories Sept ( 0.2% vs0.7% )


JC Penney ( JCP -0.80 vs -1.81 )

Surgical Care ( SCAI: 0.21 )

UGI ( -0.05 vs-0.12 )

 ThursdayDillard’s ( DDS 1.26 vs 1.13 )

Kohl’s ( KSS 0.74 vs 0.81 )

WMT ( 1.12 vs 1.14 )


08:30 hrs Initial Claims 11/08 ( 281K vs 278K )

08:30 hrs Continuing Claims 11/01  ( 2355K vs 2348K )

10:00 hrs JOLTS-Job Openings ( NA vs 4.835Mln )

10:30 hrs Natural Gas Inventories 11/08 ( NA vs 91bcf )

11:00 hrs Crude Inventories 11/08 ( NA vs 0.460 Mln Bbls )

14:00 hrs Treasury Budget Oct ( NA vs -$90.6Bln )


Nordstrom ( JWN 0.72 vs 0.69 )

Re/Max Holdings ( RMAX 0.40 vs 0.31 )

 Friday08:30 hrs Retail Sales Oct ( 0.3% vs -0.3% )

Ex-Auto ( 0.3% vs -0.2% )


08:30 hrs Export Prices ex-Ag oct ( NA vs -0.2% )

Import Prices ex-oil Oct ( NA vs -0.1% )


09:55 hrs Michigan Sentiment Nov ( 87.5 vs 86.9 )


10:00 hrs Business Inventories Sept ( 0.2% vs 0.2% )



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Best Stocks To Buy November 2014

Where to Invest November 2014


Market Strategies Fundamentals


The DJ Transportation Index once again led the way to new all-time highs, up 2.2% to 8949.11.


The Dow rose 183.41 points and the S&P 500 added 13.87 or 0.7%   also to new all-time highs.


The Nasdaq Composite ended with a little gain of 1.79 on the week or 0.04% while the Russell ran out of gas again and was even a little lower down 0.19 points or 0.02%.


Investors were encouraged by the Republican mid-term election win, while Europe seemed to cooperate to be on the verge of their own form of asset purchases to create more currency and assist their beleaguered economies. Spain, Italy and Greece have negative GDP’s while Germany’s is barely above zero. Optimism has gone to a new yearly high as the bullish consensus has run to 52.7%.


Utilities led all Dow Industrial Groups up 1.64% for the week.

The XLU, the Utility ETF Spider, rose to 46.25 a new all-time high.


Consumer Goods rose 1.42%; Industrials 1.32% and Financials 1.17%. Consumer Services added 0.63%; basic Materials 0.48%; Technology 0.38% and even Oil and Gas was up by a meager 0.05%.


Both Telecommunications and Health Care were in the red. Telecomm was off by 0.01% while Health Care fell 0.70% as investors fear a repeal of Obama Care next year.

Where To Invest your money now



Market Strategies Economic Data


The Unemployment rate dropped to 5.8% from 5.9% in September. The average workweek rose to 34.6    hours from 34.5 in September. Hourly earnings rose 0.1%. Nonfarm Payrolls rose by 214K, less than the consensus which augured for 235K. Employment levels increased by 683,000 and participants in the labor force rose by 416,000. While many feel disappointed by the report, the employment gains are substantial enough to fuel acceleration in consumption growth and more consumers spending. Over the past several weeks, the initial claims level has stabilized below 300,000 and layoff activities have been reported at their lowest level in 14 years. As the economy grows from this point there are likely to be a continued shortage of qualified workers, which might keep the employment pace at best around 200,000 job gains per month.


The Institute of Supply Management Report, which is reported the first day of each new month surged to 59.0 for October, its best level in three years. The Production Index increased to 64.8 in October from 64.6 in September. The Production Index increased to 64.8 in October from 64.6 in September, and gains in new orders, which rose to 65.0 from just 60.0 might keep production elevated over the next few months. Backlogs returned to an expansion as the related index increased to 53.0 from 47.0 in September. The Employment Index increased to 55.5 in October from 54.6 in September.


Total Index 59.0 56.6 59.0 57.1 55.3
  Orders 65.8 60.0 66.7 63.4 58.9
  Production 64.8 64.6 64.5 61.2 60.0
  Employment 55.5 54.6 58.1 58.2 52.8
  Deliveries 56.2 52.2 53.9 54.1 51.9
  Inventories 52.5 51.5 52.0 48.5 53.0
  Export Orders 51.5 53.5 55.0 53.0 54.5
  Prices paid (not seasonally adj) 53.5 59.5 58.0 59.5 58.0


Productivity continues to impress. Nonfarm labor productivity increased 2.0% in the third quarter, down from an upwardly revised 2.9% (from 2.3%) gain in the second quarter.  Hours worked also softened, up 2.3% in Q3 after increasing 2.5% in the second quarter. Meanwhile, compensation growth increased 2.3% for a second consecutive quarter. The increase  in labor costs are not significant enough to create inflation. Productivity gains in the last two quarters made up for the loss in the first quarter.


Category Q3 Q2 Q1 Q4 Q3
Nonfarm Business Sector
Productivity Q/Q 2.0% 2.9% -4.5% 3.3% 3.6%
Unit Labor Costs Q/Q 0.3% -0.5% 11.6% -1.3% -2.9%
Productivity Y/Y 0.9% 1.3% 0.7% 2.0% 0.7%
Unit Labor Costs Y/Y 2.4% 1.5% 2.5% -2.1% 1.2%

What Should I Invest In
Undervalued Small Cap Stocks


We have bought positions in each of these companies.
Target Energy* ( TEX.AX  0.05  Australia ), In the USA, ( TEXQY: $ 5.50 ) a new ADR.


This company trading at a nickel could earn more than where it is now trading. Perhaps 7 to 10 cents is in the cards.


Their business valuation exceeds market cap.


Leo Motors ( LEOM $ 0.07 )*

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 www.leomotors.com ( English Version ) Risk is 3 cents.


You have heard about a new short-circuit technology. Many new breakthroughs in electric energy are coming.


RMS Medical Systems, Inc ( REPR 0.39 )*

Freedom 60 designs, markets, manufactures infusion devices portable, including needles and easy to handle by patients. The RescueVac is also used in ambulances and planes for emergency suction.

Medical Stocks To Watch



Cleveland BioLabs, Inc ( CBLI $ 0.41 )*


CBLI has done much research on cancer as well as developing a prevention for radiation sickness. Just imagine the catastrophe if radioactive material falls into the wrong hands. The Russian Medical Federation has invested heavily in this.


Entolimod is being developed as a radiation treatment. Please go to www.cbiolabs.com for more pertinent information.

top stocks to buy



stocks to buy October 2014



Labor Smart, Inc. ( LTNC: $ 0.048 )* 


See Corporate Site: 


Top line sales growth is significant.


They deliver labor solutions at assigned jobsites ready for work while other services are still sending candidates to be interviewed.


Labor Smart delivers people-power to small and medium sized businesses in warehousing,

freight handling, light industrial services, manufacturing, social events, and retail industries.


They also support commercial construction and demolition industries with general labor and skilled trades people.


Labor Smart was founded in 2011, is based in Hiram, Georgia and currently operates 30 branch locations in the Southeast and Central States. Their growth model includes both new office establishments in addition to acquisitions.


SEE Small Cap Stock To Buy Research Report – Click Here



Stocks To Buy On A November Dip:


Notice: The Flexibility for whatever the market direction. Both the VIX and SPXU protect against declines while the UDOW and various stocks are from the long side.


The APT had a nice run ( to over $ 10 ) but now is stopped out.


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 4.74  4.42 3.21
IIIN Insteel industries Metal fabrication 29 0.7 411 24.26 21.22 21.22
KR Kroger Retail Food 17 0.24 24.6K 57.80 48.90 46
XOM Exxon Mobil Energy 13.4 1.1 420K 96.59 90.50 92.50
UAL United Cont Hld Transportation 16 1.2 18.1K 54.18 46 48
UDOW Ultra Pro Dow 30 ETF 135.15 104.81 114.20
DE John Deere Farm Equipment 9.4 0.80 29.0K 88.66 80 83
BELFB Bell Fuse Inc B Electronics 9.5 0.74 276 28.29 23 24.50
SPXU Ultra Short S&P Hedge purposes 40.45 43.20 41
DD DuPont Chemicals 21 1.71 61.3K 70.41 64.80 63
VXX VIX Volatility Hedge Portfolio 29.03 27.10 28
MOS Mosaic Company Agriculture Chemicals 70 2.10 15.3K 44.04 42.28 41.70



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Options Trading Strategeis

Market Strategies Cycles

Optimism has been overwhelming as four indexes on made new highs on Friday, The Dow, S&P Transports and Utilities. Not since March 1998 has that happened on the same day. The American Association of Individual Investors popular poll, which we publish weekly,  is up to 52.7% who think that stocks will rise over the next six months. What has been consistent is the negative performance of equities whenever that index rose above 50%. The bulls have had the benefit of the fundamentals: Low interest rates, cheap commodity prices such as gas at the pump , the creation of QE type capital around the world and an apparent Republican victory.


Fueled by slowing global growth and Ebola outbreak concerns, the first half of October handily lived up to the month’s nasty reputation. From their respective mid-September highs, DJIA was off 6.7% and S&P 500 was down 7.4% before finding support in mid-October. However, concerns quickly faded as corporate earnings continued to meet and beat expectations (central banks also helped out) and the markets briskly rebounded to finish the month solidly higher. DJIA gained 2.0%, S&P 500 2.3%, NASDAQ 3.1% and Russell 2000 a whopping 6.5% in October. DJIA, S&P 500 and NASDAQ all finished the month at new highs.

As a result of October’s v-shaped recovery, gains were widespread across most ETF sectors.  Investors were able to buy high quality stocks that were featured on our table. Exxon, DuPont, John Deere and Kroger  and United Airlines were the top five at a big discount to value. We also bought the UDOW, Dow ETF at a great price surrounded by the SPXU and Volatility Index for added protection.
The worst declines were recorded from Gold, Silver and Oil. Yet if you stood in there and bought Exxon as recommended you got a great stock at a discount, a large quality growth stock with a dividend.


The Alpha Pro Tech ( APT: $ 3.26 ) had been to over $ 10 a share on the Ebola scare. The heavy metals such as Iron Ore, plus Gold Miners and Oil producers, were among the biggest losers. Stocks like Cliffs Natural Resources ( CLF: $ 11.17 ) plunged all the way down to $ 7 a share in October. Not to be outdone Walters Energy ( WLT: $ 3.19 ) fell all the way down to $ 1.65 per share. WLT began the year above $ 16/share.


The Market Vectors Jr Gold Miners (GDXJ) plunging 27.2% in October. Its performance has been so miserable that it has the dubious honor of being the worst performing ETF over 1-, 2-, 3-month periods and second worst over the last 6-months and 1-year timeframes.





Rule 17B Attestations and Disclaimers

Princeton Research, Inc. has approximately 2,581,578 shares of AIVN both free and restricted and represents them for Investor relations. 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 was paid $ 2,500 to write a report on Xinergy. Princeton has signed a contract with CBLI to be paid $ 2500 for July and August for investor relations. Princeton has been engaged by Target Energy. No contract is currently in place. Princeton was paid about 500,000 restricted shares of Leo Motors.


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 0.05 in Australia. Princeton owns 400,000 Australia shares and about 900 U.S. ADR’s.


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.


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Please Direct All Inquiries To: 

Mike King

(702) 650-3000



Princeton Research

3887 Pacific Street,

Las Vegas, Nevada 89121

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