Several Gold ETFs are quoted on ASX, and some are among this market’s largest ETFs [2]. Funds flow into ASX-quoted Gold ETFs increased substantially in 2025 as more investors sought exposure to the gold price rally, or to help protect their portfolio against market volatility [3]. 

Like all investments, gold ETFs have risks. The value of a gold ETF that tracks the spot gold price would be expected to fall if the gold price fell, and vice versa. 

Options over the Global X Physical Gold Structured ETF (referred to as 'GOLD ETF' in this article) can potentially help manage these risks and provide more flexibility to trade your view on gold. 
 

Understanding options

Options are financial contracts that give you the right, but not the obligation, to buy (call options) or sell (put options) an asset – such as a Gold ETF – at a specified price within a certain timeframe. 

As such, trading Options over GOLD ETF enables investors to implement sophisticated strategies to help manage risk and return from their gold investments.

The ASX Options knowledge hub has information on the features, benefits and risks of using options. The main risks of options, including Options over GOLD ETF, are the option falling in value and potentially unlimited losses (with some options strategies).

For a detailed explanation of options trading on ASX, read Understanding options trading, paying particular attention to the Risk of Options Trading on page 28 of that document.
 

Overview of gold options strategies

To help you understand how gold options can be used, here is an overview of the three main types of gold options strategies. Each depends on your view on gold, your investment goals and market conditions. 

These strategies should not be interpreted as recommendations on the use of Options over GOLD ETF or on the future direction of the gold price. Speak to an accredited broker on derivatives or do further research of your own before acting on information in this article.
 

Strategy one: protect your portfolio’s gold exposure – bearish view

Market uncertainty can cause the gold price to swing sharply. Options over GOLD ETF offer investors tools to potentially cushion their portfolios from sudden downturns in the gold price.

• Buying put options: purchasing put options on a gold ETF acts as an insurance policy. If the price of gold falls, the value of your put option rises, offsetting losses in your ETF holdings. This strategy may suit investors who want to maintain exposure to gold but are concerned about the potential for short-term price declines.
• Protective collars: by combining the purchase of a put option with the sale of a call option, investors may limit downside risk in the gold price while generating premium income. This 'collar' strategy may provide peace of mind for gold investors during volatile periods in the gold price.

Strategy two: profit from further potential gains in gold – bullish view

Options allow investors who have a bullish view on gold to gain exposure to any potential upside, while managing their risk exposure:

• Covered call writing: if you already own shares in a gold ETF, you may generate extra income by selling call options over your holdings. You collect a premium upfront, which may potentially enhance your overall return, especially in sideways or moderately rising markets. The main risk of covered call writing is limited upside if the value of gold ETFs increases. 
• Leveraged exposure: buying call options enables you to control a larger position in a gold ETF for a fraction of the cost of outright ownership. If the gold price rallies, the percentage gains on your investment can be significant, though it’s important to note the significant additional risks involved with using leverage, which can also magnify losses.

Strategy three: trading gold in different markets - bullish, bearish or neutral 

Options strategies can be tailored to suit different market views and risk appetites. Whether you expect gold prices to rise, fall or remain stable, options provide flexible tools to trade different views on the outlook for gold and thus gold ETFs.

• Generating income: selling options —such as covered calls or cash-secured puts — may provide regular income, lowering your overall cost of holding a gold ETF.
• Volatility trading: if you anticipate increased volatility in the gold price, strategies like straddles or strangles allow you to potentially profit from large price movements in either direction.

Getting started

To begin trading Options over GOLD ETF on ASX, investors should:

• Ensure their brokerage account has an ASX options trading capability.
• Familiarise themselves with the basics of options, including contract specifications, pricing and strategies. Visit the ASX Options knowledge hub for information on options.
• Consult with a licensed financial adviser to ensure options strategies align with their investment objectives and risk profile.
• Monitor market conditions, GOLD ETF performance and options positions regularly.
   

Conclusion

Options over GOLD ETF offer investors new ways to potentially protect, grow and enhance their portfolio returns through exposure to the gold price.

Options can be customised to match your investment goals, timeframe, and risk tolerance. Options strategies may also help investors navigate uncertain markets and preserve their capital. 

If their view on gold price’s direction is correct, Options over GOLD ETF could help investors extract more value from their GOLD ETF holdings through income generation and leveraged opportunities.

Trading Options over GOLD ETF is now available to Australian investors via the ASX, with transparent pricing and regulated market infrastructure.

As with all derivatives, it’s essential to understand the risks involved and seek professional advice before getting started. 

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[1] Some gold ETFs on ASX track the spot gold price in Australian dollars. Others provide currency hedging.
[2] ASX Investment Products Monthly Report, October 2025. Based on funds under management for commodity ETFs that track the spot gold price.
[3] Based on a comparison of funds under management in gold ETFs on ASX between October 2025 and October 2024.