In 2026, gold is soaring, with GLD up 7% since the start of the year. Investors are rushing to buy the leading precious metals ETF. Those who held GLD for two years have seen returns of over 124%. Cash-secured puts offer a strategy to potentially buy assets at a discount during this bull run.

Cash-secured puts give you the right to sell an asset at a specified price. Selling a put means you must buy the asset if the buyer exercises their right. Cash-secured puts require having enough cash to buy the asset if assigned, making them safer than naked puts. They are used when moderately bullish on the underlying asset.

When selling cash-secured puts, choose high-quality stocks or ETFs. Look for trades on Barchart with a balance between risk and reward. Select contracts that cover trading fees and provide enough income. Choose the trade that aligns with your financial goals, whether it’s generating income or acquiring the stock at a discount.

One example trade is selling a 400-strike put on GLD for $2.67 per share. If GLD stays above $400 until expiration, you keep the premium. If assigned, you’ll buy GLD at $400 per share, regardless of its market price. While the trade has risks, it offers income while waiting for a preferred purchase price.

Cash-secured puts offer a way to earn income while positioning yourself to buy an asset at a lower price. While there are risks involved, it can be a strategy to generate income while being patient with your preferred entry price. Selling cash-secured puts can offer a way to earn income while waiting for a better buying opportunity.

Read more at Barchart: Don’t Chase Gold. Use This Options Trade to Earn Income Instead