Here’s a look at what we got going on this morning…

The market is in positive territory as BMad is back in the news today. You know, Bernard Madoff, the dude that milked investors for $50 billion in the world’s greatest Ponzi scheme. Bernie told the courts today that he had feared for his physical safety. What gives him that strange idea?

You can bet some more heads are going to roll the more Harry Markopolos continues to talk to Congress. He had some harsh words about the SEC (Securities and Exchange Commission) when he said they failed to act despite receiving credible allegations of fraud from him about Madoff’s operations.

I don’t really talk about this stuff but some of the things that are going on with people and their money simply blow my mind. This is why I like to manage my own money and make my own choices when it comes to investing or trading.

And on that note…

Amgen (AMGN, $57.75, up $1.09) is up another 2% and that means more good news for our call options. I mentioned the February 60 calls (YAABL, $0.80, up $0.25) at 40 cents and the March 60 calls (YAACL, $1.80, up $0.30) were at $1.20. I did favor the March calls more than the Feb’s but both options have already posted great returns. The February calls are up 100% and the March calls are up 50%…

For those of you who didn’t see it coming…Electronic Arts (ERTS, $17.52, up $2.02) was the bus driver for those of you still holding the February 15 puts (EZQNC, $0.20, down $0.70). I warned you…

The Visa (V, $50.55, up $0.58) February 55 calls (VBK, $0.90, up $0.30) dropped like a rock after I mentioned them for a half-position trade at $1.00. Many of you got in for under 75 cents judging from the emails I have received and yes, earnings are due out today after the bell. Once again, if you already have a profit before the market closes, you can close the position and take all of the risk out of the trade. This was a half position so I’d leave it open if you like to roll the dice every once in a while.

Genentech (DNA, $82.19, down $0.78)…let the hate mail begin. I can’t explain it, really. Sorry bubba, it ain’t looking good for the February 95 calls (DWNBS, $0.07, down $0.03) and this will probably the first negative trade of the year.

On the other hand, let the love mail begin for the Google (GOOG, $351.93, up $11.48) February 370 calls (GGDBN, $4.90, up $2.80) which have officially doubled from when they were profiled at $2.30 on Monday. Close the trade or set stops at $4.60.

We are hanging in there with the Spider Gold Shares (GLD, $89.09, up $0.62). The dollar continues to weaken but we are not getting the pop in Gold like we should.

Rick Rouse
Rick@OptionsMentoring.com