Introduction

In recent years many investors have expressed increased interest in gold as an investment and portfolio diversification tool. The introduction of CBOE Options on SPDR Gold Shares (GLD) provides investors with another tool for portfolio and risk management. The SPDR Gold Trust, which is an exchange traded fund (ETF), issues SPDR Gold Shares that represent a fractional, undivided interest in gold bullion held by the SPDR Gold Trust.

Key Facts about SPDR Gold Shares (GLD)

Inception Date. The GLD ETF was launched on November 12, 2004 (originally with the name streetTRACKS^® Gold Trust).
Year-end Prices for the GLD ETF were 51.58 in 2005, 63.21 in 2006, and 82.46 in 2007 (see also the graphs below).
Asset Size. In April 2008 the GLD ETF was the 6th largest US-based ETF, with more than $16 billion in assets (see also the table below).

CBOE Options on GLD

Key features for CBOE GLD options include:

• Underlying—100 shares of the GLD ETF.
• Exercise Style: American—GLD options generally may be exercised on any business day before the expiration date.
• Settlement of Option Exercise: Physical Delivery of GLD shares.

Please visit these links for more information on CBOE and options strategies:

June 2, 2008 Press Release - includes Product Specifications
Commodity-based ETF Options
Options Trading Strategies
Options Toolbox
Reasons to Choose CBOE

Price Charts

Low or Negative Correlations

Some investors consider gold to have the potential to help diversify a portfolio of traditional investments, and the GLD has had low or negative correlations with a number of benchmark indexes.

Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options (ODD). Copies of the ODD are available from your broker, by calling 1-888-OPTIONS, or from The Options Clearing Corporation, One North Wacker Drive, Suite 500, Chicago, Illinois 60606. The information on this website is provided solely for general education and information purposes and therefore should not be considered complete, precise, or current. Many of the matters discussed are subject to detailed rules, regulations, and statutory provisions which should be referred to for additional detail and are subject to changes that may not be reflected in the website information. No statement within the website should be construed as a recommendation to buy or sell a security or to provide investment advice. The inclusion of non-CBOE advertisements on the website should not be construed as an endorsement or an indication of the value of any product, service, or website. The Terms and Conditions govern use of this website and use of this website will be deemed acceptance of those Terms and Conditions.