This morning I sold 2 AUY Sep08 10 Puts for a net deposit of $60.50 in an IRA account.  If put to me my basis for these AUY shares would be 9.70 and would be combined with 300 other AUY shares held in this account allowing me to average down my basis for the 500 shares.

I sold these AUY puts thinking that I would probably not be assigned the shares.  However, if I am, the combined lower basis would allow me to sell covered calls at a lower strike price and still make money if the shares should be called away.