Discover New Opportunities: November 5th Options for SPDR Gold Trust GLD Now Open
Investors in SPDR Gold Trust (GLD) have new opportunities with options contracts available for the November 5th expiration. This development offers intriguing prospects for both put and call contracts.
SPDR Gold Trust November 5th Options Overview
Among the notable options is a put contract at the $380.00 strike price. This contract currently has a bid of $5.45. Selling this put would entail an obligation to purchase shares at $380.00, generating a cost basis of $374.55 after accounting for the premium received.
Cost Savings for Investors
This approach can be appealing for those looking to buy GLD shares, especially considering the shares are currently priced at $383.63. The $380.00 strike reflects roughly a 1% discount to the current price, placing it out-of-the-money by that percentage. Current analytics suggest a 66% chance that this put contract could expire worthless.
Potential Returns on the Put Contract
If the contract does expire without being exercised, the premium collected would yield a return of 1.43% on the cash commitment, or an impressive 34.80% annualized. Stock Options Channel will monitor these statistics, providing updates on their website under the contract details.
Exploring the Call Contract
On the call side, there is a contract available at the $390.00 strike price, with a current bid of $8.80. Purchasing shares of GLD and simultaneously selling this call creates a covered call strategy. If the stock is called away at the expiration, the total return would amount to 3.95%, excluding any dividends.
Call Contract Dynamics
Given that the $390.00 strike price is a 2% premium over the current trading price, there is a chance that this contract may also expire worthless. Current data indicates a 51% probability of this happening. If the covered call does expire without action, investors retain both their shares and the premium collected.
YieldBoost on Covered Calls
Should the covered call contract expire worthless, the premium would provide a return of 2.29%, equating to an annualized rate of 55.66%. This performance metric is referred to as YieldBoost.
Volatility Insights
The implied volatility for both the put and call contracts stands around 30%. In contrast, the actual trailing twelve-month volatility, based on the last 250 closing prices along with today’s price of $383.63, is estimated at 19%.
Conclusion
As the options for SPDR Gold Trust open up, investors have unique opportunities to enhance their trading strategies. For further insights into options contracts and other investment ideas, visit Emegypt.
