BobW, you'll all over it, as usual!

Personally, I wouldn't even consider those $2.60 warrants - they expire way too early for my taste. January 2015 options or the warrants expiring in February 2016 are far better plays. Of course, the stock could run up strongly into fall, and then ultimately flop, which would make my above strategy very, very wrong.

I think the stock is a better buy now than those early expiring warrants, and I don't think the stock is a particularly good buy at these levels at this time.

But, what I would consider is selling some Jan 2014 $1.50 strike puts. Problem with MNKD is, you'll have to put cash or marginable securities up to secure those puts, but in this day of 1% CD rates, you'll be getting 20% on your cash (or securities value) reserve. Of course, if the stock tanks to less than $1.20 or so by Januray 2014, you're a loser! And the more it goes down beyond $1.20, the bigger loser you are, so it's not exactly JP Morgan you're getting your return from!! I likely will not do this, as I already have similar positions with MNKD, and, at some point, enough is enough.