I took (long) 08/2007 $108 put before it gapped up. Then, I sold 04/2007 $108 put for $1.0 and bought back for $.70. Today, I may sell 05/2007 $108 put for $2.3, but I did not do that because I wanted to see if it will fill the gap.

When we are wrong in buying calls or puts, we can change them into calendars to reduce the cost. Otherwise, we will be killed by the time decay quickly