I just learned about an interesting strategy and was wondering if any of you guys do this. Here's how it works... Say, you're watching ABC stock, and it's trading around $30. And you're interested in buying if it pulls back to $25. So, instead of placing an order to buy at $25, you sell $25 puts. If the stock doesn't pullback to $25, you make money on the puts. If it does pullback to under $25, then the buyers of the options will exercise their put, and you will be long the stock at $25 like you wanted to be anyway. Plus, your purchase price is reduced by the premium you received when you sold the options. Sounded pretty good to me, but I wouldn't mind hearing from someone who's tried this.