FILE - In this July 20, 2015, file photo, Federal Reserve Chair Janet Yellen, from left, with Vice Chairman Stanley Fischer, and the board of governors of the Federal Reserve System, presides over a meeting in Washington. Nine years after they last raised their benchmark interest rate and after months of feverish speculation, Federal Reserve policymakers this week may finally raise that rate from a record low near zero. (AP Photo/Manuel Balce Ceneta, File)

And up we go again!

After failing the 16,000 line early yesterday, the Dow has now come back 450 points (2.8%) thanks to Janet Yellen’s bullish outlook in yesterday’s “do-over” speech at Amherst.  “The message from Yellen yesterday was that it’s not that bad, and we’re still going to hike,” said Allan von Mehren, chief analyst at Danske Bank A/S in Copenhagen. “That was what the market needed to hear.”

Of course, this was no surprise at PSW as I had already said to our Members Tuesday Morning (7:56) in our Live Chat Room: “Interesting timing (Yellen’s 5pm Thurs speech) knowing Durable Goods are out that day.  She’s scheduled for 5pm, so maybe a market-booster into the week’s end. ”

In fact, in our Options Opportunities Portfolio, we called the top in gold as it topped $1,155 and cashed out the trade we discussed in yesterday morning’s post, getting $6.95 for our long GLD Oct $104 calls and buying back the short $108 calls for $3.40 for net $3.55 ($3,550), which was up a very nice 62% ($1,360) in just two weeks.  That’s why we call it the opportunity portfolio!

In fact, just yesterday morning, when I was telling you how great that trade was, it was only at $3,000, so we added another $550 (18.3%) in a single session!  Options are certainly a tool you want to have in your trading toolbelt.  Sure, anyone could have seen that GLD would bounce off $105 and go back to test $110 and you could have made 5% playing the stock.  But you would have had to have bought 710 shares of stock for $74,550 to make the same $3,550 we made by investing just $2,190 in 10 option contracts.