I agree that it is so undervalued now, but I also caution too much optimism for a upside soon. Unless we have some big news like a firm buy out offer or some other positive news like huge Jan. sales numbers, it is quite possible that we will be in this seemingly long and protracted state of large short interest that keeps the price down for a long periods of time and only can be arrested by a few days of relief by some hedge fund giving up and deciding to cut their losses and cover their short position just like what happen last Monday.
But I totally agree with your investing rationale that long term prospect is indeed very good, hence I decided not to trade my core position and just use call options to take advantage of this volatility. GL.
Buying options is a losing game, house win in 70-90% of the time, buying options is like taking casino odds. Selling ( covered, or uncovered ) options is much better game. Majority of all options expire worthless. DNDN Feb Max Pain is at 14. Street crooks will make sure that DNDN close under 14 on Friday, and then it will jump up next Monday. Sure, any sudden fundamental change ( like buyout offer ) would change everything in a second. What are the chances for that to happen? Very slim...
It's a risky bet, it's a flip of a coin, you can only make big money if there's any positive news next week that could get it back to at least over 15. Sold all my Feb and March calls last Monday to cash out my profit and bought May calls.
And not as big as I could have anticipated but good profit. But if you feel lucky, then I hope you are right. GL.
I'm not saying Feb Calls are done - although I rolled into March to be behind earnings - because I thought about Feb contracts right until the close yesterday.
I would guess the game is still alive for options expiration next week. Headline risk is with the shorts... If the valuations (on the $14 Calls) get to lottery ticket prices on Monday or Tuesday I could be back into the mix. But... As stated... March looks the safest for headline protection with earnings coming up.
Not sure I would buy calls this close to expiration. I hope you're wise, of course, but the stock is so manipulated right now. I'd be inclined to give myself some space as the stock rises.