Hi, so I closed this thread because I thought it was just me... My issues was resolved (not quite sure how). I am the only user on the account, and I have admin rights - so for me that was not the cause. When I checked back after receiving the first response on this thread the options had reappeared under reading - I assure you it was not there before.
As for what caused it to reappear, some of the things I tried that might have affected it include:
1. Created multiple pages to provide landing page options. I think I did this in the beginning before looking at the Reading page but I could be wrong - It would make sense that you would have to create pages before you could select one. Either way make sure you create multiple pages.
2. Switching the theme several time (switched back to my original in the end).
3. Logged in and out of the account after creating pages.
These suggestions might sound stupid - but I didn't do anything fancy and as I said all of a sudden it was fixed and is working fine now.
Good luck with your site!