Gold has topped $1,000 an ounce this morning, rising $23.80, or 2.4%, to $1,000.30. The last time gold topped $1,000 was last March when the price reached a record $1,033.90 an ounce. Gold is up nearly 50% from its low of $681 in October and that $1,033 record appears likely to be broken.

The Spider Gold Shares (GLD, $97.77, up $2.00) continue to make a run towards $100 which has meant good things for our call options. The March 99 calls (GLDCU, $3.60, up $0.90) were profiled at $2.05 on February 2 and the March 100 calls (GLDCV, $3.15, up $0.65) were entered at $1.90.

Research in Motion (RIMM, $40.20, down $1.89) fell below $40 earlier in the session. On Wednesday, I mentioned RIMM could be headed back into the $30’s and we now have some decent profits on the put options I profiled.

The March 40 puts (RUPOH, $3.10, up $0.75) were profiled at $2.15 and have hit a high of $3.50 this morning. The March 35 puts (RUPOG, $1.33, up $0.40) were profiled at 85 cents. Let’s see how the rest of the day unfolds before we close this one out. I really don’t trust them over the weekend but they may be worth holding.

The Dow Jones Industrial Average Index (DJX, 73.65, down 1.01) trade is also working well for us. We entered the March 75 puts (DJXOW, $3.85, up $0.45) at $3.10 on Wednesday and the March 74 puts (DJXOV, $3.50, up $0.50) at $2.75. The Dow continues to weaken and we could be headed below 7,300.

I’m thinking of closing the Bank of Amercia (BAC, $3.39, down $0.54) trades for a loss. With the possibility of nationalization hanging in the balance, BofA could be headed even lower. The two call options, the March 6 calls (BYOCF, $0.25, down $0.05) and the March 7 calls (BYOCG, $0.17, down $0.02) were entered at 90 cents and 60 cents, respectively, on 2/12. There is plenty of time left for the calls to bounce back but we may be better off closing them today.

Rick Rouse
Rick@OptionsMentoring.com