Options Trading

May 6, 2013

Market Strategies Newsletter

Sample Issue

Covering High Return

Balanced Investing Strategies To

Make Money In Up Or Down Markets

A Publication of Princeton Research, Inc. (www.PrincetonResearch.com)

 

Market Strategies

$10,000 Options Trading Account

There are seven open positions:

NOTE: This is a Sample Issue Only!

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MARKET STRATEGIES NEWSLETTER ISSUES

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Funds in Use: $ 3,845.00

Options Trading Strategies Comments

Remember, these trades are based on your participation in the

VIP Subscriber Members Only

TEXTING SERVICE TO RECEIVE ALL UPDATES.

 

This week we gained $1,259

bringing the YTD performance to

a new high return of $18,854

 

This betters our last years’

total return of $17,174

 

While the market continues to “climb wall of worry” the sentiment indicators remain in neutral ground with the Bullish slightly below its average, the Bearish slightly above and neutral stuck @ 33%.

While everyone is talking about the new ALL TIME HIGHS, several sectors are growing tired.

We will continue to concentrate on stocks that have been consolidating above their 200 day moving averages.   Buying breakouts in a tired market is not a good strategy since they are generally uncomfortably above support and can pull back without changing outlooks.

The continued escalation in the Mideast conflict is troubling, with Israel claiming that they are targeting missiles imported from Iran.  We all know that this is a long-term issue that will not get better anytime soon, and we can expect negative effects without warning.

We will continue to seek new positions that meet our risk profile with limited downside to maintain performance.

…CAM 

Where To Invest Now

Options Trading Strategies Table

DATE	STOCK OPTIONS	PRICE	COST	PROCEEDS	RESULTS
5/03	This Information Is For Subscribers Only	0.94 0.91		564 546	216 Gain 198 Gain
5/01		4.05		405	145 Gain
4/30		1.61		805	480 Gain
4/30		2.60	780
4/29		1.09		545	220 Gain
4/26		0.65	650
4/25		0.10	60
4/24		0.68	680
4/23		1.20		600	300 Gain
4/23		1.55		775	600 Gain
4/19		1.00		1000	650 Gain
4/18		0.60	600
4/15		0.58	696
4/15		0.35	700
4/01		0.73	1460

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.

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 25^th 147 calls or puts.

For any questions please call (702) 650 3000.

 

Market Strategies Where To Invest Now

Market Laboratory – Weekly Changes

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

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.

                    

New Stock Recommendations

Market Strategies $100,000 Trading Portfolio

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

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

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

 

$100,000 Trading Portfolio

Options Trading Strategies

Recommendations And Overall Comments

We made $ 4,747

in closed out positions last week

expanding our profits for the year to

a new plateau, a hypothetical $ 36,229

 

We have one long BAC warrant position and six long options positions:

The Stock table includes the following seventeen positions:

 NOTE: This is a Sample Issue Only!

TO GET OUR TRADE ALERTS BY TEXT MESSAGE AND

THE COMPLETE VIP MEMBERS ONLY

MARKET STRATEGIES NEWSLETTER ISSUES

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We are basing money management on a hypothetical $100,000 and are using $4,770  

for the six options positions, $63,142.00 in the17 stock positions plus the BAC Warrants ,

a total of  $67,912 with $32,088 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.

Previous Week’s Recommendations and

Rules for the

$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

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

 

This Weeks’ Market Strategies

Economic Numbers and Media Data                                 

Market Strategies Trading Fundamentals

For the first four months the Dow is up 13.2% and the S&P 500 12%.

The top performers in April were Telecomm, + 6.9%, Biotech/ Pharmaceutical + 5.5%, Real estate + 5.4%, Utilities + 4.6%, Dividend Stocks + 3.2%.

All five sectors show a strong bias toward dividend paying and defensive type stocks. Apple became more of a conservative stock and actually gained 21.07 points from its March 31^st close of 428.91 to 449.98 at the end of April.

 

The worst performer was Gold followed by Natural Resources. GLDX was the worst leveraged ETF fund in April down 28% for the month. For the year so far it is down a whopping 45.4%.

 

Market Strategies Cycles

The trade Balance surprised with a drop to -$38.8B, almost $ 5B better than expected, all of which is a positive addition to GDP numbers.

Payrolls exceeded expectations, increasing by 165,000 . That was 10,000 more than the 155,000 expected by the Briefing.com consensus. Revisions in March, to 138,000  from 88,000, and February, to 332,000 from 268,000, were strongly positive. It showed another 114,000 workers already in the workforce, missed in past reports. The unemployment rate ticked down to 7.5% in April from 7.6% in March. The consensus expected the unemployment rate to remain at 7.6%. However, the average workweek dropped from 34.6 to 34.4 hours, and the chart shows wages to be very weak.

 

Market Strategies Economic Data

The Dow Jones Industrial Average, has been ripping this year leading the major broad stock market averages to big gains in the first four months of the year and new all-time highs except for NASDAQ. Thanks to continued massive stock buyback programs and cost-cutting measures, many of the blue chips large caps that make up the DJIA and the S&P 500 have met or exceeded earnings projections for Q1 2013. Revenues have not been so robust.

Weakness in the middle of the week might be a buying opportunity because the Friday May 10^th, before Mother’s Day the DJIA has gained ground eleven of the last eighteen years and on the Monday after the blue-chip average has risen in fourteen of those years.

Sell in May and go away has not worked in post-election years. Only 1981 and 2001 post-election years had down markets from May1st to Dec 1^st. 2009, 2005, 1997, 1993, 1989, 1985 were all positive.

 

Market Strategies Technical Information

Support Levels S&P 500    1553 – 1557

Resistance S&P 500           1638 – 1644

 

Support Levels DOW          14,475 – 14,495

Resistance DOW                 15,120 – 15,180

 

Support Levels QQQ           69.80 – 70.00                  

Resistance QQQ                  74.40

                  

Support Levels Nasdaq      3260

Resistance Nasdaq             3526

 

NOTE: This is a Sample Issue Only!

TO GET OUR TRADE ALERTS BY TEXT MESSAGE AND

THE COMPLETE VIP MEMBERS ONLY

MARKET STRATEGIES NEWSLETTER ISSUES

Visit:

www.princetonresearch.com/investment-strategies.htm

To Lock In Your SPECIAL Low Subscription Rate

 

Rule 17 B 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. When there is no movement in penny stocks, even though there is none or very small losses, we will liquidate if money is needed for better opportunities. We now believe the three small penny stocks we represent for a total outlay of $ 9,725 is well worth the risk.

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 Email issue. Princeton may buy or sell its free-trading shares in companies it represents at any time.

 

CONTACT

Please Direct All Inquiries To:

 

Mike King (702) 650-3000

Or

Charles Moskowitz (781) 826-8882

Princeton Research

3887 Pacific Street, Las Vegas, Nevada 89121

Phone: (702) 650-3000

Fax: (702) 697-8944

mike@princetonresearch.com

Visit: www.princetonresearch.com

 

Options Trading