Generate Cash Flow From This Gold Trade

Commodities Investing, ETFs, Gold & Silver

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.