You should first read the article. The drop was caused by bad ER, ie. happened just overnight. And: the algo makes use of earning credit by ShortSelling options. I'm not the author of the strategy, nor of the article.
Here's another article on the Stock Repair Strategy with examples: https://optionstradingiq.com/stock-repair-strategy/ " STOCK REPAIR STRATEGY [...] Assuming the goal of the investor is to simply recover the losses and get out at breakeven, a strategy called the Stock Repair Strategy can be employed. The strategy involves adding a call ratio spread to the stock holding. [...] "
You should try one of these next time you have a losing opened position and come back here with the final result. Oh wait, you're not trading with real money yet don't you?
No the thing with the wheel strategy which is what this "stock repair" strategy really is is that you shouldn't keep the stock just because you think keep writing calls would ALWAYS lessen a significant amount of your losses hence "repair" your stock trades. The wheel strategy only works for stocks that are in a temporary downtrend or in a consolidation phase that they are destined to ride out eventually. For stocks that are in a permanent downtrend due to a change in their revenue-earning ability, change in the market that their business is in or some other fundamental reasons, it's best to trash them and invest the money somewhere. It won't be worth it to keep writing calls on them. This is where the more you "repair" the stock, the more stress you will suffer.