In my May 16 article I presented a simple strategy for playing gold miners stocks. Today a quick update of that trade plus one relevant modification:
As you see, the trade is still active and buying GDXJ on May 16 would have bring a profit of $2.5 per share till now (7.1%).
But, for those risk averse players, this deal could be a little bit different. Because this is a play between big PM miners (GDX) and junior PM exploration companies (GDXJ) it could be less risky to go LONG GDXJ and go SHORT GDX - smaller profit but smaller risk as well As you like.
But generally the trade is still on...