Where To Invest Now August 2012
Market Strategies Newsletter
Covering How To Invest Now
High Return Balanced Investing
Success Strategies For
Where To Invest Now, Stocks To Buy And
Options Trading
A Publication of Princeton Research, Inc. (www.PrincetonResearch.com)
Contributing Staff: Michael King, Bill Chippas, Charles Moskowitz
July 30, 2012 Market Strategies Newsletter
Make Money In Up Or Down Markets.
Options Trading Strategies
$10,000 OPTIONS Trading Portfolio
The $10,000 Options Only account had a Gain last week of $ 570
increasing our gains for the year from $10,640 to $11,210.
A Return Of Over 112%
Five positions remain open.
Approximately $ 3,014 funds are in use.
This week was punctuated by disappointing earnings and economic data that was sorely lacking in promise. The market however had no trouble focusing a perceived shift in the Eurozone toward solving some of their issues in real time. Clearly, with a bullish and a bearish story available, the choice seemed to be an easy one. The main factor for me was the continued and concentrated talk of the Euro declining to par (1.00) from 1.21, even though we came from over 1.26 to the 1.20 area in 3 weeks. As usual, I will quote “Everybody is NEVER right.” The short covering rally probably from all new shorts on the break from 1.225 to 1.1973 (FXE) got all the “junior technicians” excited and on the wrong side of the trade when it didn’t collapse.
The options only account had a good week mostly because we had orders under the market for new positions. Our order in MCD 8/92.50 calls @ $ .95 was filled on the gap down on the aforementioned earnings disappointment at $ .35. We had also come into the week long GLD and took a nice profit on the rally from $152 to $157. One other new position, USG 8/16 calls was added @ $ .85 on Thursday. This position reflects the thesis that housing has bottomed. USG is the “old” U. S. Gypsum, and is the major maker of wall-board. I’ve have noticed that there are now ads on TV for lawyers to handle “bad imported wall-board,” and USG will benefit greatly from increased building or refurbishing of homes. It gapped down on Wednesday, also on a disappointment in earnings, from $19 to $15.25 and into major support. The stock also has over 22 million shares short out of a float of about 73 million. If this stock moves higher, we could have a short-covering rally to the $19-20 area. Our options closed at $1.20, but were $1.45 bid and we will have to deal with the 100% rule very soon……CAM
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