Generate Cash Flow From This Gold Trade

Commodities Investing, ETFs, Gold & Silver
by Jay Soloff
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Gold has been a popular investment with inflation concerns currently a headline topic.  The SPDR Gold Shares ETF (GLD) is one of the most popular methods for investing in gold.  The heavily traded ETF is backed by physical gold.  One thing GLD doesn’t do is pay a dividend.  To generate a form of cash flow from GLD, traders can use a covered call strategy.  A covered call trade last week in GLD options involved selling May options and collected 1% in call premiums (over that timeframe). It also allows for some upside potential in the stock price.

Author: Jay SoloffJay Soloff is the Options Portfolio Manager at Investors Alley. Jay is also the editor for 48-Hour Income, Options Insiders, and co-editor of Weekly Income Accelerator and POWR Income with Tim Plaehn. Prior to joining the online investment world, Jay was a floor trader and market maker on the CBOE, the world's largest options exchange. His experience includes trading a multi-million dollar options portfolio in equities options as well as serving as a consultant to Wall Street options trading groups. Jay also spent time as a senior analyst at a hedge fund of funds, where he analyzed professional options funds as well as traded option strategies for hedging purposes. All told, Jay has 20 years of options trading experience. He received his undergrad degree in Economics at the University of Illinois - Champaign, and his MBA and Master of Science in Information Management from Arizona State University.
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