Ownership Submission
FORM 3
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
  Lott Virgil
2. Date of Event Requiring Statement (Month/Day/Year)
10/20/2009
3. Issuer Name and Ticker or Trading Symbol
DIGIRAD CORP [DRAD]
(Last)
(First)
(Middle)
13950 STOWE DRIVE
4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
Senior VP, Operations
5. If Amendment, Date Original Filed(Month/Day/Year)
(Street)

POWAY, CA 92064
6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Beneficially Owned
1.Title of Security
(Instr. 4)
2. Amount of Securities Beneficially Owned
(Instr. 4)
3. Ownership Form: Direct (D) or Indirect (I)
(Instr. 5)
4. Nature of Indirect Beneficial Ownership
(Instr. 5)

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. SEC 1473 (7-02)
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Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 4)
2. Date Exercisable and Expiration Date
(Month/Day/Year)
3. Title and Amount of Securities Underlying Derivative Security
(Instr. 4)
4. Conversion or Exercise Price of Derivative Security 5. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 5)
6. Nature of Indirect Beneficial Ownership
(Instr. 5)
Date Exercisable Expiration Date Title Amount or Number of Shares
Stock Option (Right to Buy)   (1) 11/11/2018 Common Stock 20,000 $ 0.7 D  
Stock Option (Right to Buy)   (2) 07/09/2016 Common Stock 23,333 $ 1.21 D  

Reporting Owners

Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
Lott Virgil
13950 STOWE DRIVE
POWAY, CA 92064
      Senior VP, Operations  

Signatures

/s/ Virgil Lott 10/28/2009
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 5(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) The options shall vest, with a vesting commencement date of November 11, 2008, over a four-year period with one forty-eighth (1/48th) of the shares subject to the option becoming exercisable each month on the same day of the month, or to the extent such a month does not have the corresponding day, on the last day of any such month, until all the shares are vested and exercisable, subject to optionee continuing to be an employee on each such date.
(2) The options shall vest, with a vesting commencement date of July 9, 2009, over a two-year period with fifty percent (50%) of the shares subject to the option becoming exercisable on the one year anniversary of the vesting commencement date and one twenty-fourth (1/24th) of the shares subject to the option becoming exercisable each month thereafter on the same day of the month, or to the extent such a month does not have the corresponding day, on the last day of any such month, until all the shares are vested and exercisable, subject to optionee continuing to be an employee on each such date.

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