There is a trade you can do and you are CERTAIN to make money.

100% CERTAIN ! No Joke !

Take $10,000

put $5,000 in a short trade on JNUG and $5,000 in a short trade on JDST

Day 1 JNUG goes Up 5% and JDST goes Down 5% so net net your short is a wash right ?

BUT as time goes by they BOTH decay….decay is built in to these things.

So even if the underlying GDXJ stays flat over a period of time….You are making money on the decay for BOTH instruments as you are shorting them.

You need to rebalance at the end of each day ( last 2 minutes of trading if possible) .

That is , you want to always have an equal amount of $s in each trade at the beginning of each day.

So you sell a portion of the one with the most profit from the previous day and buy an equal amount of the opposite such that the amounts are equal and away you go.

With zero commissions now this cannot lose !

I have not done it because I cannot short these instruments in my particular account but i have heard some can !!

I have presented this trade in the past and have never heard of anyone who has done it.

Someone out there with a margin account check it out . If there are shares of these 2 ETFs available to short at your broker you have a free money making machine !

🙂

PS I am not talking about put options …this is shorting the actual shares .