Wheel strategy on GLD

Long-term, Gold seems to be in an uptrend and we all could use a bit of gold in our portfolios.... would you consider the Wheel strategy on GLD given current levels? Are there better ways to get exposure to gold and generate some income from it?

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u/RealFills 1 21 hours ago

GLD is a tricky underlying for the wheel. Gold tends to spend years going sideways or correcting, then makes most of its gains in short, strong bursts. The wheel earns income in the sideways phases, but it caps you in exactly those bursts, which is where the long-term return comes from. And if you get assigned in a correction, you’re stuck selling calls below your cost basis or for relatively little premium. GLD’s IV is usually too low to compensate for that trade-off (despite the recent spike). But that's just my take...
u/TomatilloEfficient60 1 21 hours ago

Gold's been climbing for a while now and I keep thinking the same thing, but I'm always too scared to pull the trigger on the wheel with it. The sideways periods feel safe until you remember that one week it jumps 5% and you just watch from the sidelines holding cash.