Optioneering Newsletter

September 25, 2016

The Dow Monthly

The monthly trend is up and the long-term outlook is bullish. However, there
are always corrections along the way. The little pullback that has occurred
recently is expected to yield to a further advance.

The first profit opportunity we will review is in AAPL, or Apple. Apple is

probably best known for iPhones, laptops, iPads, and iTunes. However,
Apple’s product line and services are much broader and more diverse than
that.
 AAPL Monthly

The monthly chart shows that Apple has been in a very strong bull trend
since 2009. There have been two significant corrections during the long-term
bull trend. Trading since the summer low suggests that the second deep
correction is over and the uptrend is resuming.
 AAPL Daily

The daily chart shows that AAPL has been very bullish since the June low.
The pullback toward the Mid-Line of the Keltner Channel gives us a buying
opportunity.

We are going to review a Call Debit Spread for AAPL.

Traders who want a more leveraged approach could consider buying AAPL
calls. AAPL has options expiring every week until November 4th. After that,
AAPL has options expiring in mid- November, December, January, February,
March, April, June, July, November, January 2018, and January 2019.
 Buy to Open AAPL December 16th expiration 95-strike Call
Sell to Open AAPL December 16th expiration 110-strike Call

We can see from the Call Option Spread Analysis Calculator that if the AAPL
stock price stays where it is or increases at all when the options expire, the
spread will make a 25.5% or $305 profit. If AAPL declines -2.5% when the
options expire, the spread will make 24.6% or $294. If the AAPL stock price
is down -5% when the options expire, the spread will make 1% or $12. If the
AAPL stock price is down -7.5% when the options expire, the spread lose
-22.5% or -$269.

The next profit opportunity we will review is in CBPO, or China Biologic

Products, Inc. China Biologic Products is the only blood plasma-based
biopharmaceutical company approved by the government of Shandong
Province, the second largest province in China with a population of 93
million. The company is engaged in research, manufacturing, and sale of
plasma-based biopharmaceutical products to hospitals and other health care
facilities in China. Plasma-based human albumin is used mainly to increase
blood volume while Immunoglobulin is used for disease prevention and
treatment.
 CBPO Monthly

The monthly chart shows that the CBPO stock price rose from below $10 in
late 2012 to over $140 early this year. The summer low appears to mark a
higher low bottom. Since higher lows bottoms point to higher high tops, the
minimum upside target is above this year’s high of 144.29.
 CBPO Weekly

The weekly pattern of higher highs and higher lows also suggests a further
advance.

We are going to review a Call Debit Spread for CBPO.

Traders who want to employ a more leveraged approach can buy CBPO
calls. CBPO has options expiring in October, November, January, and April.
 Buy to Open CBPO November 18th expiration 105-strike Call
Sell to Open CBPO November 18th expiration 120-strike Call

We can see from the Call Option Spread Analysis Calculator that if the
CBPO stock price declines by -2.5%, stays where it is, or increases at all
when the options expire, the spread will make a 29.3%, or $340 profit. If the
CBPO stock price is down -5% when the options expire, the spread will make
27.5% or $319. If CBPO is down -7.5% when the options expire, the spread
will make .3% or $3.

The next profit opportunity we will review is in ICUI, or ICUI Medical, Inc.
ICUI Medical is a California-based company with global operations that
develops, manufactures, and sells medical technologies used in vascular
therapy, oncology, and critical care applications.
 ICUI Monthly

The monthly chart shows that ICUI has been in an uptrend since the chart
started in 2011. After a deep 3-wave pullback from last year’s high, ICUI
has been very strong this year. ICUI hit a new all-time high last month.
New record highs are bullish.
 ICUI Daily

The daily chart for ICUI has a clear bullish pattern of higher highs and
higher lows. The current period of sideways trading is expected to yield to
a further advance.

We are going to review a Call Debit Spread for ICUI.

Traders who want to employ a more leveraged approach can buy ICUI
calls. ICUI has options expiring in October, November, February, and
May.
 Buy to Open ICUI November 18th expiration 110-strike Call
Sell to Open ICUI November 18th expiration 120-strike Call

We can see from the Call Option Spread Analysis Calculator that if the ICUI
stock price declines by -5%, stays where it is, or increases at all when the
options expire, the spread will make a 32.5%, or $245 profit. If ICUI is down
-7.5% when the options expire, the spread will lose -9.1% or -$69.

The last profit opportunity we will consider this week is in STMP, or

Stamps.com Inc. Stamps.com provides internet-based mailing and shipping
services that allow small businesses, online retailers, and other
organizations to print official United States Postal Service stamps and
shipping labels with their computer, printer and an Internet connection.
 STMP Monthly

The monthly chart shows that STMP was extremely bullish from the 2014
low until the 2015 high. Trading since the summer low suggests that the
deep pullback could be over and the uptrend could be resuming.
 STMP Daily

The daily chart shows that STMP has been very bullish since the July low.
This month’s pullback gives us a buying opportunity.

We are going to review a call debit spread for STMP.

Traders who want to employ a more leveraged approach can buy STMP
calls. STMP has options expiring every week until November 4th. After that,
STMP has options expiring in mid-November, February, and May.
 Buy to Open STMP November 18th expiration 75-Strike Call
Sell to Open STMP November 18th expiration 90-Strike Call

We can see from the Call Option Spread Analysis Calculator that if the
STMP stock price declines by -2.5%, stays the same as it is now, or
increases in price at all at when the options expire, the spread will show a
profit of 25% or $300. If the STMP stock price is down -5% at expiration,
the spread will make a 21.7%, or $260 profit. If STMP is down
-7.5% when the options expire, the spread will make 2% or $25.

EARNINGS SEASON: There are four “Earnings Seasons” a year. The seasons begin in
January, April, July, and October and they each last about two months. The earnings
reports can have an impact on the stock price. We don’t know if the impact is going to
be positive or negative (or nothing at all). It’s up to you to decide if you want to be in a
trade when the earnings report is announced. Here’s a link for a page that can help you
keep track of the report dates:

https://www.earningswhispers.com/calendar
 Note: Profit performance displayed in this newsletter does not include transaction
costs.

This newsletter includes some trading ideas following Chuck Hughes’ trading
strategies along with educational information. For a complete listing of Chuck’s
exact trades, including specific entries and exits and real time Portfolio tracking,
please call Brad at 1- 866-661-5664 or 310-647-5664