Digital Power Corp (DPW)

[PennyStockTrader2]

well trading the DPW options has been interesting. I ended up buying back SOME of the 5 calls on Friday at .25 which was a good profit having averaged around .90 / option, but I didnt buy them all back and will let the remaining ones cancel my underlying DPW stock, which gives a bit more wiggle room to buy the stock if it drops into the lower 4s again. Meanwhile the 7.50 calls went out worthless and I now have a partial position of covered 5 and 7.50 calls for February.

Here's the thing, why not write calls against my entire position, and my thinking is the following. DPW stock is establishing a pattern of spikes but we never know when we will get them but WHEN WE DO, the volatility increases for these options, so, I want to be ready to either: sell the underlying stock that doesnt have options written against it especially in the premarket if given the opportunity, OR be able to write the same options I can write today for 5.0 or 7.5 strikes but with a larger premium, so I am waiting out for that potential larger premium - if I dont get it then fine, hence why its only a part of my position that doesnt have covered calls written against it.

Also the 5.0 puts are really well priced, if you can write both 5 call puts for February you can fetch $2.40, that is unreal, unreal. You cant do that in a 401K/IRA where only covered calls are allowed, but you could in a normal brokerage and I plan on doing that as soon as I have the margin to support it.