If your within your limits, averaging down works well, I use this method in forex regularly. If you where to buy at a worse price as the other trader suggested you would get killed!
So far only one half of this strategy has been presented. To back up a bit don't do it on your long term holds but pick a stock that is solid but a slow moving channel stock that does have weekly options. 1. First buy the stock by selling a "Cash Secured Put" with a strike price below the current stock price. You can do this with your broker's basic option approval and do not have to be cleared to sell "naked options" but you do have to have enough cash in your account to pay for the stock when it is delivered at your strike price. 2. If it does not come down to your strike price by the option expiration then you pocket the "put premium" and sell another one. 3. When you do get filled then you got paid the premium to buy the stock at a cheaper price. 4. Now that you own the stock then keep selling the weekly covered call above current stock price until your stock is called away. 5. Repeat Steps 1 through 4. This strategy works great in a stable choppy stock but it a fast moving market you are subject to the risks that others have made very clear. For example when your first "Cash Secured Put" was filled the stock may continue dropping to the point that you have a net loss even before you sell your first covered call.