Checking in on Gold ($GOLD, $1,220.80, up $1.40), the yellow metal regained the $1,200 level last week and the major-moving averages are starting to level out following steady declines since early November. Continued closes above the $1,230 level and the 100-day moving average would be bullish for a possible run towards $1,265-$1,270 and the 200-day moving average. Support is at $1,200 followed by $1,175 and the 50-day moving average.
We love trading Gold, to the upside and downside, as our Track Records have shown over the years. We will be targeting the Spider Gold Shares (GLD, $116.13, up $0.29) as a way to play a bullish trade in Gold if shares clear $116.50-$117 and the 100-day moving average this week. A close above the latter could lead towards a run $118-$120 and the 200-day moving average. A close below $114-$112 and the 50-day moving average would stall the current momentum.
The GLD March 119 calls (GLD170317C00119000, $1.20, up $0.10) are the first options on my list as they would double from current levels if GLD clears $121.40, technically by mid-March. These options were active on Friday and open interest is approaching 3,000 contracts.
The GLD March 120 calls (GLD170317C00120000, $0.95, up $0.50) also look attractive as these options would double from current levels if GLD shares are pushing $122 by March 17th. While there are weekly call options to trade on GLD, often times the bid/ ask is wider and volume is lighter. This is why we mainly trade monthly options. The 52-week high for GLD shares are north of $131. If we take action on either or both of the aforementioned call options, we will send out a New Trade Alert.