SPDR Gold Shares
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. It was launched in response to increasing interest in gold as an investment and portfolio diversification tool. The introduction of CBOE Options on SPDR Gold Shares (GLD) (and simultaneously at other U.S. options exchanges) in June 2008 provided investors with another tool for portfolio and risk management.
In its first month of trading, June 2008, CBOE claimed 50 percent of the market for GLD options of all U.S. exchanges. Total volume for CBOE GLD options in the 20 business days in June reached just less than 250,000 contracts of the roughly 477,000 GLD contracts traded in the U.S.  On July 11, 2008, CBOE GLD volume exceeded 92,000 contracts, a record in just a six-week period.
- 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.
- Asset Size: In April 2008 the GLD ETF was the sixth largest US-based ETF, with more than $16 billion in assets.
CBOE Options on GLD Specifications
- Underlying: 100 shares of SPDR Gold Shares
- Strike Price Intervals: Minimum of one-point increments
- Strike (Exercise) Prices: In-, at- and out-of-the-money strike prices are initially listed. New series generally will be added when the underlying shares trade through the highest or lowest strike price available
- Expiration Date: Saturday immediately following the third Friday of the expiration month
- Expiration Months: Generally, two near-term months and two months from the March quarterly cycle (March, June, September and December)
- Last Trading Day: Trading in GLD options ordinarily ceases at the close on the business day (usually a Friday) preceding the expiration date
- Exercise Style: American exercise
- Settlement of Option Exercise: Physical Delivery. Exercise notices properly tendered on any business day will result in delivery of GLD Shares on the third business day following exercise
- Margin: Uncovered writers must deposit 100% of the options proceeds plus 15% of the aggregate contract value (current ETF price multiplied by $100) minus the amount by which the option is out-of-the-money, if any. Minimum margin is 100% of the option proceeds plus 10% of the aggregate contract value. Long puts or calls must be paid in full
- Trading Hours: 8:30 a.m. - 3:15 p.m. (Chicago time)
- CBOE'S AVERAGE DAILY VOLUME IN JUNE RISES 39%; 4.9 Million Contracts Per Day, Total Volume - 103.3 Million Contracts During June; Trading In Equity Options Gains 45%, ETF Options 61% Over June 2007. CBOE.
- "Volume Query: Options contract volume on GLD for period 06/01/2008 thru 06/30/2008.”. Options Clearing Corporation.