I'd be looking at the $2 puts, and I'd start with November, where you should be able to get .12 per share. So, if you get put, you're cost would be about $1.88. I would ladder my sales as the prices are very generous down the line - Jan at .20; Feb at .27 and May at .36 - those are all the current bid prices, so you might do a penny or two better.

One risk, of course, is the stock never get as low as $2 on an expiration date, and you never get any shares, but at least you've made money and it sounds like your current plan is to wait for the stock to get lower anyway. But at least you made the money with the sales.

Of course, if MNKD tanks and the stock goes to $1, or worse, you're a big loser, but you would have been anyway, as you surely would have bought the stock at some supposed bargain price on the way down.

Finally, you will have to have enough cash or marginable securities in your account to secure the puts. For example, if you did 100 contracts, brokers will insist you have $20,000 up in either cash or marginable securities (you know, in real companies!!). If MNKD were a bigger (more established and stable financially) company, you wouldn't have to put up the whole $20,000.