The Barrick Gold (ABX) January 50 call option is our most leveraged of these positions. We would still like to see the stock close above the $51 level for a couple of consecutive days, which would clear the way for a move to its previous highs in the mid $50s. The Market Vectors Gold Miners (GDX) ETF likewise appears ready to take a stab at the mid $60s. Our more aggressive small-cap plays, Gabriel Resources (GBU.TO, GBRRF) and NovaGold Resources (NG), offer even more return potential, percentage-wise.   Finally there is the metal itself, via the SPDR Gold Trust (GLD), as well as its silver analog, the iShares Silver Trust (SLV), both of which should remain top performers going forward. And if we’re wrong on the stock market’s direction and shares tank for some unforeseen reason, the metals should act as a safe haven.   Our other commodity play, the SPDR Oil & Gas Exploration and Production ETF (XOP) faces mild overhead resistance in the $54 area, but once through that it could quickly climb to around $58. Given the strength in crude oil, and assuming natural gas prices don’t collapse from here, a move in the ETF even higher seems likely in the next few months. The position remains a buy for new clients at its current price.   We’re still holding the Garmin (GRMN) January 30 put option, but we’re watching it closely. The stock has displayed decent strength in the last several sessions and could temporarily be pulled higher with the rest of the market. Be ready to dump the position on our signal if need be.   Read More

This morning we traded out of the Coach (COH) January 52.50 put option since the stock looks to have found a bottom and is more likely to rise than fall in the near term. We booked a profit on the trade of 15 percent in just under two weeks.   We closed the Lululemon (LULU) December 55 put option on Thursday for a 47 percent gain after the underlying stock sold off sharply.   Also last week, we exchanged a position in the PowerShares DB Base Metals (DBB) ETF at essentially breakeven for a more attractive commodity play, the SPDR Oil & Gas Exploration and Production ETF (XOP). The shares have given up ground along with the rest of the market, but with energy prices acting as well as they are we look for the oversold ETF to quickly rebound. The position is rated a buy at its current price.   We have considerable exposure to the precious metals space. The most leveraged of these is our Barrick Gold (ABX) January 50 call option. Barrick Gold (ABX) has spent a couple of days trading above the technically important $51 level. It may now trade sideways for a bit, but we anticipate a move up to its former highs around $55.50 a share. The option is a buy if you don’t already own it.   Read More

Sell to close the Coach (COH) January 52.50 put option at the market. Coach (COH) seems to have found what should prove to at least be a temporary bottom. With the shares now increasingly likely to stage a short-covering rally, we want to exit our trade and lock in a healthy profit. Read More