Chapter 16. Stock Repair and Stock Enhancement

We all have experienced the situation in which we buy a good stock only to see it undergo a significant pullback in price. We still like the stock and feel that it will recover at least some of the ground that it lost. There is a low-cost option strategy that can help you get back to a break-even status when the stock regains only part of its lost value. The same strategy also can be used to greatly enhance your profit in a stock for essentially no additional expense beyond the original cost of the stock.

The stock repair strategy uses options to assist in bringing your stock investment back to a break-even level. This strategy is structured to attain the break-even status at a stock price that ...

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