a) Sell OTM PUTs when stock is depressed $7 - $8 range. b) Sell OTM Calls (covered) when stock has run up to $11 - $12.
The above strategy has worked wonders. I most likely will stop the second part in about 4 months as at that point I want the existing shares to run to $18 which I believe will happen with the next year. Right now, selling the $5 or $7.5 PUTS is easy income!!
I would be cautious. Buy more if you truly believe in the company, especially if it brings your average price down. That said, with every passing day I am more and more convinced that the stock is rigged. Maybe "they" will let it fly one day or maybe "they" come out with a hit piece to get it to below $5. Regardless, this stock is sure as hell not trading on fundamentals whatsoever....if it were you would definitely see your $12+. The fact that it is under $8 after plunging on no news and got a half assed recovery back up to the mid $7s is simply baffling to me. Somebody has their thumb on this thing as nobody in their right mind would be selling at these prices based on fundamentals. just my $0.02.
Agreed, if you are going to buy more, here is not the place... see what happens. Either it goes up and you can cry for joy or it goes down and you have a better buying price. The uncertainity at this range is just too great especially if you have some skin in the game. However, one day the market will be forced to pay some heed to the growing fundamentals, the shorts will cover, the import liscence will pass, and LIWA will continue to expand at alarming rates. Just don't know how long...