Now is the time to short sell gold miner volatility: Michael Purves

Volatility in Market Vectors Gold Miners ETF (GDX) is at multi-year highs and "never sustains these levels," providing a unique short sale opportunity for those focused on options trading, according to Michael Purves, Chief Global Strategist and Head of Equity Derivatives Research at Weeden & Co.

Perves in a Wednesday interview with Bloomberg:

"My particular focus is on implied volatility and so the trade that I've been recommending is actually to sell volatility on the GDX, which is at multi-year highs right now and it never sustains these levels."

"If you've been following the price actions, even on these bad, ugly days, the implied volatility really barely moves."

"What the options market is telling you is that we get it, these thing have declined a lot…we get ┬áit, we're getting into this range-bound trading, and that volatility I think sets up a great short sale for those focused on options."

Click here to see the interview.