Know Your Options
By Journal of Indexes Staff

Related ETFs: GLD

Options Begin Trading For GLD

Options began trading on the streetTRACKS Gold Trust (NYSEArca: GLD) in early June after listing on the Chicago Board Options Exchange and NYSEArca.

At $17 billion, GLD is the largest asset-owning gold ETF in the world, and the lack of options on the trust had been a sore point for some time.

Options allow investors to engage in more-sophisticated investment strategies and hedge their investments—something that many find desirable with the gold market in such a volatile state lately.

The options were made possible by a recent cooperation agreement signed between the SEC and the Commodity Futures Trading Commission.