Timing is very important with options. Back in April 2009, I found out during my Atlantic City vacation that DNDN had gone up 3X, from 7 to 22. My position was not very large, only around 12 ITM calls. But it was a very nice payday, considering the amount of money I had at risk.
Keep your shares as a core holding. Consider doing option strategies as a side bet to lower the cost basis of your shares. Because it is difficult to make money in the market, you have to do whatever you can to gain an edge. One example would be the Jan 2014, 3.00/5.00 call spread for a debit of around 1.00. Max profit for this would be 1.00 (100%). The one nice thing about this spread is your cost basis per share is around 4.00 when the pps is 4.52 Another popular play is to buy OTM calls and finance them by selling OTM puts.
There are a lot of other good option strategies for DNDN. However, do not use them unless you fully understand how they work.
Chances are high you'll lose $. Stock is manipulated - max option pain. Better to own shares. Too hard to time catalysts and when they occur, negative stories and massive shorting often follow quickly. Plus, 4$ stock is an option! Owning shares may yield high reward in the long run. Risk is still high.