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Strategies & Market Trends : You buy a stock. It goes down, now what? -- Ignore unavailable to you. Want to Upgrade?

To: Bald Eagle who wrote (38)	7/8/1998 1:32:00 PM
From: Elmer Flugum	Read Replies (1) \| Respond to of 112

I like to average down, either by buying more of the shares outright or I will sell some puts ( a few months out, usually timed for stated earnings announcements) just below the present price. If the stock continues to fall, I am buying more,(averaging down). If the stock remains stable or moves up, I have generated some cash for the waiting period that the stock usually requires to recover. I have done the same with Symantec. I initially bought shares at 31 1/4, three years ago. Since then, I have wittled down my average cost to about 22 3/4. Presently, I am sitting on more Oct 22 1/2 and 25 puts and Oct 30 Covered calls. Looking to do this, when conditions are right for my shares in GLM. CHKPF will be just fine...sold some July 25's last month, did not have to buy, so I generated some cash for my time. Also, sold Oct 30 Puts...for 3 5/8. Won't hurt to own this company at 26 3/8 or to generate some cash for my time. Thats how it works for me. Len