I liquidated my position (mostly accumulated February through Early April of last year) as it hit the long-term cap gain level. This is clearly a business that has some significant issues (leaving Dave 2Dogs Sherwin aside - I think most of his 'ethical' practices stuff mirror industry behavior and are will prove immaterial unless some lawyer/prosecutor can find a kangaroo court to drill them). Structurally, they were adding stores during an unfavorable leasing period when a primary competitor (OMX) was not; their other primary competitor (spls) is simply stronger; ODP is saddled with an international unit that adds a great deal of complexity but does not seem to be a leader. Finally, the use of office supplies is declining not just because of economic reasons, but technological ones. They are in a tough spot.
Any longtime followers of Depot can check out my posts over time which have been accurate. The one above from a week ago pretty much states the problem - this stock was a great buy at $0.70 per share in Feb '09 but was a really crappy buy at over $9.00 yesterday. At $9.00, the company should be showing clear signs of recovery - not comp store declines versus the worst quarter ever for retailers. Retail gurus have been saying for years that the U.S. can only support 2 office supply co's; I think we have a candidate for odd man out.
I wouldn't recommend this as a buy over $5.50 or a short under $8.00. I liquidated one quarter of my short today and all of my puts. I will get out of the short fully over the next week. By the way, don't trade the options in this stock, too much money gets eaten in the spreads by the market makers.
I think you were smart to take some money off the table and invest it in something else. I hope you're diversified. I also sold 75% of my ODP shares recently. I am still holding 1000 shares that I bought at .73 last March.