Mid-Week Summary It's not exactly, "mid-week," but there are a lot of moving parts today that require our attention. Gold's breakout is noteworthy and QQQ is getting hit, teetering on a fall. Details below. Gold Breakout Since we have been deferring to Silver for so long, we no longer have an active option position on GLD. The Gold (GLD) breakout today looks impressive on the charts and the two-month target window is at least 10% higher, so let's add March OTM calls. Spot Gold Mar GLD Calls GLD has risen $50 over the past 60 days. If this trend continues at the same rate, it would reach $485 by March expiration. However, the rate of increase is accelerating rather than remaining constant, targeting $500+. This would result in the March $475 call options increasing at least fivefold in value. GLD Apr Calls Alternatively, these Apr $500C for under $5.00 ($470 per table above) look ripe for a similar 5X increase, but with another month of life to achieve those gains. We will add the GLD March $475C in the Premium Portfolio, but feel free to add GLD Apr $500 as per personal preference. Hard -50% stop in either case. QQQ - Intermediate Term Support Broken This doesn't look good, as two hours before the close and 610 support is barely holding on. If it doesn't we need to add Feb OTM puts. QQQ Feb Puts A QQQ close below 610 and I will add the Feb 20th $575P to the Premium Service Options Portfolio. Although 600 should hold, if it does not, the decline to 580 support could be swift...and ugly. Premium Service Options Portfolio Our only exposure to the downside is AAPL, not enough if QQQ takes a deep dive.
