Obviously, the bottom in the large cap gold stocks is not in. However, I don't think it is far off. So I did what I've been threatening to do for a while - I sold a put on the GDX. I got 1.50 for selling a 52 Feb GDX put. If GDX closes above 52 on Feb 18, the put expires worthless & I just keep the 1.50. If it closes below, I'll own it at 52 - deduct the comission and I would own it at 50.50. I would be quite comfortable owning GDX at 50.50.

If GDX goes lower in the next few days, I'll sell a 51 put and collect another premium. I think selling puts is a good strategy for bottom fishing - it gives you a margin of error - you can be a little bit wrong and still make money.