Sure, AD, I'll share my experience.

I've been selling stock options for years, puts first then covered calls if the puts are exercised. My KRY $5 puts were assigned years ago, so I sold $5 covered calls for a while. Then KRY went south and the premium for $5 calls disappeared. I knew about LC and the MOC so I just held on. And on. When the SP hit .50 or so I started averaging down: why the hell not, at that price? And when it hit .20 I averaged down some more. So now my average price is about a buck. When the news broke last June I was tempted to sell at .70, take a 30% loss and go on from there. But migod, this China deal looked terribly promising--so here I am, just like the rest of the hopeful sweethearts on this board, waiting, waiting, waiting. But for a while there was a bit of premium for April 2.50 calls, so I've sold enough contracts to liquidate my position if they're exercised (earning, incidentally, a 10% APR on my KRY investment). I'd be DELIGHTED with 2.50/share in April, but also I'd be happy to see them expire--and then go on to arbitration.

This is a pure speculation play, and the only one in my portfolio. Your 25% solution sounds truly intelligent to me--but you'd have to violate it if you want to speculate.

Good luck with the cataract surgery. Did that years ago; you'll be amazed at the success.

Lope