“Considering GLD calls are attractively priced right now, and with the gold ETF approaching what tends to be a very positive month, traders who expect history to repeat may want to consider striking while the iron is hot and scooping up short-term calls,” reports Schaeffer’s. “In addition, the fund sports a Schaeffer’s Volatility Scorecard (SVS) of 89, which indicates that GLD has tended to exceed options traders’ volatility expectations during the past year — an enticing factoid for would-be premium buyers.”

Tax reform along with other government initiatives coupled with higher interest rates and a stronger dollar are among the factors that could hamper potential upside for gold.

For more information on the gold market, visit our gold category.

Tom Lydon’s clients own shares of GLD.