New Options for SPDR Gold Trust: Analysis and Insights

Investors in SPDR Gold Trust (Symbol: GLD) have access to new options that will expire in May 2026. With 382 days remaining until expiration, these new contracts offer a valuable opportunity for both sellers of puts and calls to capture higher premiums compared to options with nearer expiration dates.

Puts: Attractive Strategy at $300 Strike Price

The put contract at the $300.00 strike price currently has a bid of $15.35. Selling-to-open this put contract obligates the seller to buy the stock at $300.00, while also collecting the premium. This effectively lowers the cost basis of acquiring shares to $284.65, not accounting for broker commissions. For investors looking to buy GLD shares, this strategy may be a more cost-effective option than paying the current market price of $304.88 per share.

Since the $300.00 strike price represents an approximate 2% discount to the current trading price, there is potential for the put contract to expire worthless. Analytical data indicates a 65% chance of this happening. Our platform will monitor these odds over time and provide updates on their fluctuations. If the put expires worthless, the premium gained would yield a 5.12% return on the cash commitment, translating to a 4.89% annualized return—a figure we refer to as YieldBoost.

Chart of Trading History

Below is a chart showing the trailing twelve-month trading history for SPDR Gold Trust, with the $300.00 strike price highlighted in green:

Calls: Covered Call at $330 Strike Price

On the call side, the contract at the $330.00 strike price has a current bid of $16.55. If an investor buys shares of GLD at the current price of $304.88 per share and sells-to-open this call contract, they would be agreeing to sell the stock at $330.00. With the premium included, this strategy could yield a total return of 13.67% if the stock is called away at the May 2026 expiration, excluding dividends and broker commissions.

However, a significant upside could be missed if GLD shares appreciate substantially. Therefore, it is crucial to consider trailing trading history and the underlying fundamentals of the business. Below is a chart of GLD’s trailing twelve-month trading history, with the $330.00 strike price highlighted in red:

The $330.00 strike represents approximately an 8% premium to the current trading price. Thus, there is a probability that the covered call contract may expire worthless, allowing the investor to retain both the shares and the collected premium. Current data suggests a 55% likelihood of this occurring. We will continue to track these odds and the trading history of this contract on our platform. If expired worthless, this strategy would add a 5.43% boost to returns, which annualizes to 5.19%, classified as YieldBoost.

Volatility Insights

The implied volatility for the put contract is 19%, while the call contract demonstrates an implied volatility of 18%. In contrast, our calculation of the actual trailing twelve-month volatility, based on the past 249 trading day closing values along with today’s price of $304.88, stands at 17.%. For additional options contract ideas, you can refer to our resources.

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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.