Gold Options Trading with SPDR Gold Trust (GLD)
Introduction
Gold options trading is a popular investment strategy that allows investors to speculate on the direction of the gold price without having to own physical gold. In this article, we will focus on the new options trading for the SPDR Gold Trust (GLD) with a focus on the March 13th expiration. We will highlight two options contracts of particular interest, a put contract at the $187.00 strike price and a call contract at the $192.00 strike price. We will also discuss the possibility of the contracts expiring worthless and the YieldBoost that could result.
Option Contracts
The put contract at the $187.00 strike price has a current bid of 78 cents and if sold-to-open, the investor would purchase the stock at $187.00 and collect the premium, putting the cost basis of the shares at $186.22. The call contract at the $192.00 strike price has a current bid of 46 cents and if purchased and sold-to-open, the investor would sell the stock at $192.00 and collect the premium, driving a total return of 2.15% if the stock gets called away at the March 13th expiration.
Expiration and YieldBoost
It is important to note that the options contracts have an expiration date, which is March 13th in this case. If the contracts expire worthless, the investor will lose the premium they paid. However, if the stock is called away at the expiration date, the investor will receive the YieldBoost, which is the difference between the strike price and the current price of the stock. In this case, the YieldBoost would be $4.78 for the put contract and $9.78 for the call contract.
Trading History and Analytical Data
To help investors make informed decisions, we have included charts showing the trailing twelve month trading history for SPDR Gold Trust and the current analytical data (including greeks and implied greeks) for the contracts. This information will provide a better understanding of the historical performance of the stock and the current risk and reward of the options contracts.
Conclusion
Gold options trading is a great way for investors to speculate on the direction of the gold price without having to own physical gold. The new options trading for the SPDR Gold Trust (GLD) with a focus on the March 13th expiration offers two options contracts of particular interest, a put contract at the $187.00 strike price and a call contract at the $192.00 strike price. It is important to note that the options contracts have an expiration date and if the stock is not called away at the expiration date, the investor will lose the premium they paid. However, if the stock is called away, the investor will receive the YieldBoost, which is the difference between the strike price and the current price of the stock.
By using the charts and analytical data provided in this article, investors can make informed decisions and make the most of their gold options trading.
