Investors in SPDR Gold Trust (GLD) can now trade new options expiring on April 22, 2023. Notably, a $179.00 put contract is currently priced at $4.35, allowing investors to purchase shares at a cost basis of $174.65 after accounting for the premium. This represents a 1% discount to the current share price of $180.00, with a 99% likelihood that the option will expire worthless, potentially yielding a 2.43% return or 17.76% annualized on cash commitment.
On the call side, a $182.00 covered call contract is bid at $4.15. If an investor buys shares at $180.00 and sells this call, they could see a total return of 3.42% by expiration, excluding dividends. This call is out-of-the-money by approximately 1%, and there’s also a 99% chance it could expire worthless, allowing the investor to retain both shares and premium, equating to a 2.31% additional return or 16.84% annualized.
Current volatility for GLD is calculated at 13%, based on the past 253 trading days.
