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DSP Group, Inc. (NASDAQ: DSPG) looks like it can drop even more while staying below the key 50 and 200 day averages, not much margin for imaginative strategies but DSP’s top volatility calls for Option selling action.
Should a huge drop occur in volatility, all options premiums will be directly affected, usually this can be exploited as long as one can be somewhat picky on contracts available on DSP and fast enough to take action on them.