New Options Trading Opportunities for Investors in iShares Gold Trust
Investors in the iShares Gold Trust (Symbol: IAU) began trading new options today, set to expire in May 2026. With 399 days remaining until expiration, the newly available contracts could provide an excellent opportunity for sellers of puts or calls to secure higher premiums compared to those with nearer expiration dates. Using our YieldBoost formula, Stock Options Channel has analyzed the IAU options chain and identified notable put and call contracts.
Attractive Put Contract Details
The put contract at the $60.00 strike price currently has a bid of $2.80. If an investor sells to open this put contract, they commit to purchasing the stock at $60.00 while also collecting the premium. This arrangement effectively lowers the cost basis for shares to $57.20 (excluding broker commissions). For investors interested in acquiring IAU shares, this represents a compelling alternative to paying the current market price of $61.03 per share.
Since the $60.00 strike price reflects about a 2% discount from the current trading price, there’s a chance this put contract may expire worthless. Current analytical metrics, including the greeks and implied greeks, indicate a 65% probability of this happening. Stock Options Channel will monitor these odds over time, offering a chart on our website under the contract detail page. If the contract does expire worthless, the premium earned would yield a 4.67% return on the cash commitment, equating to an annualized return of 4.27%, which we refer to as YieldBoost.
Trading History and Call Contract Insights
Below is a chart illustrating the trailing twelve-month trading history of the iShares Gold Trust, highlighting in green the position of the $60.00 strike:
Turning to the call side of the options chain, the call contract at the $65.00 strike price is currently bid at $2.20. If an investor purchases IAU shares at the current price of $61.03 and sells to open this call contract as a covered call, they commit to selling the stock at $65.00. Including the premium from the option, this setup results in a total return of 10.11% if the stock is called away at the May 2026 expiration (before broker commissions). However, any significant upside in IAU shares beyond this price would mean lost potential returns, which underscores the importance of analyzing IAU’s historical trading and its fundamental business aspects.
Here’s a chart showing IAU’s trailing twelve-month trading history, with the $65.00 strike highlighted in red:
The $65.00 strike price represents about a 6% premium over the current stock trading price. As such, there’s also a chance that this covered call contract expires worthless. If that occurs, the investor retains both their shares and the collected premium. Current analytical data suggest a 50% probability of this scenario. We will track these odds over time, providing updates on our website regarding the trading history of the option contract. Should the covered call expire worthless, the premium represents a 3.60% additional return for the investor, or an annualized 3.30%, also known as YieldBoost.
Volatility Analysis
The implied volatility for the put contract is 24%, while the call contract carries an implied volatility of 17%. In comparison, the actual trailing twelve-month volatility, based on the last 251 trading days and today’s price of $61.03, stands at 16%. For more insightful put and call options ideas, visit StockOptionsChannel.com.
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For further insights, also see:
- Funds Holding KKD
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- HWEL Shares Outstanding History
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
