GLD Options Trading — Covered Calls, Puts & the Wheel
A complete guide to selling options on SPDR Gold Shares. Expected premiums, strike selection, real example trades, and the four strategies that actually work for GLD.
Why trade options on GLD?
GLD (SPDR Gold Shares) is one of the most heavily traded ETFs for options strategies. Penny-wide bid/ask spreads and deep open interest on every strike make it ideal for premium sellers. Because GLD is a basket rather than a single name, single-stock earnings risk is diffused, which is a meaningful edge for consistent income.
Typical monthly premium collected on GLD runs around 0.5-1.0% of capital, which annualizes to roughly 6-12% if you sell new contracts every cycle. Capital required to run a single contract wheel on GLD is $5,000-$20,000 — the share price and the 100-share lot size set the minimum, not the strategy.
Live Data Snapshot
See the full GLD case study at /stocks/gld-covered-calls-cash-secured-puts for a sample trade and full strategy breakdown.
Four strategies that work on GLD
GLD Covered Call
Sell upside calls against 100 shares you already own to collect premium every month while capping your upside.
Read the GLD Covered Call guide →GLD Cash-Secured Put
Sell a put backed by cash so you either get paid to wait or acquire the stock at a discount to today's price.
Read the GLD Cash-Secured Put guide →GLD Wheel
Alternate between cash-secured puts and covered calls on the same ticker to generate continuous premium income.
Read the GLD Wheel guide →GLD Poor Man's Covered Call
Replace the 100 shares with a long-dated deep-ITM LEAPS call and sell short-dated calls against it to reduce capital.
Read the GLD Poor Man's Covered Call guide →GLD options FAQ
What is the best strike price for a GLD covered call?
On GLD, target 3-5% out of the money at 0.25-0.35 delta. On a low-volatility stock like this, closer-to-the-money strikes chase premium but spike assignment probability to uncomfortable levels.
How much premium can I collect selling calls on GLD?
Typical monthly premium on GLD is 0.5-1.0% of position value, annualizing to 6-12% when you roll every cycle. Earnings months can pay 2-3x the normal rate because of elevated IV.
What is the best delta for a GLD cash-secured put?
A delta of 0.25-0.35 on GLD balances premium income with assignment probability. Many traders anchor to 0.20 delta as a starting point and adjust based on their willingness to own shares.
How much cash do I need to sell a put on GLD?
Cash required is 100 × strike price. For GLD, that's roughly $5,000-$20,000 per contract at a typical strike. Most brokers let you use margin, but for a true cash-secured put you set aside the full amount.
Is GLD a good stock for the wheel strategy?
GLD is excellent for the wheel because of its penny-wide spreads and low IV (modest premium, low assignment risk). No dividend means all your return comes from premiums and price appreciation.
Can you run a poor man's covered call on GLD?
Yes. Buy a 0.80+ delta LEAPS on GLD dated 12-18 months out as your synthetic long, then sell short-dated calls 3-5% above the stock at 0.25-0.35 delta. Capital tied up drops from $5,000-$20,000 to roughly 30-50% of that — a meaningful improvement when the share price is a mid-range share price.
What expiration should I use for GLD options strategy trades?
Use 30-45 DTE as a default for GLD. This is the classic theta sweet spot and works well on a stable ticker like this.
Is GLD suitable for beginners selling options?
Yes — it's a well-known, liquid name with established options markets, which is what beginners need.
Run the numbers on GLD yourself
Use the free OptionsPilot calculator to price covered calls and cash-secured puts on GLD with live quotes.
Open the GLD Strike Finder →