Having $5 Jan 2013 calls long is not an enviable position, IMO. You could get lucky, but that means the rest of us longs would be getting lucky, too, what are the chances of that? LOL. You could wait for the Jan 2015 options to be available, there's been talk that they might become available after the third Friday in September, but I can't confirm that. You would sell your 2013's and get what you can of the 2015's with the proceeds (2014's expire too early, I fear). Or you could buy the warrants, MNKDW which expire in Feb 2016 - better look at those very closely and make sure they suit you. For each 100 warrants you purchase, you get the right to purchase 60 shares of MNKD for $2.40 per share any time between now and warrant expiry in Feb of 2016. If this current run-up is a head fake, then you'd sell your Jan 5's now, and hope that the stock comes back down, and buy either warrants or Jan 2015 options. Or, even the stock, if it comes down far enough.
I own only warrants, no stock, last stock I had, I sold both before and after the second CRL, replacing the stock with first, options (the stuff I sold before the CRL), then warrants (the stuff I sold after the CRL). I do have many puts I've sold at $2.50 strike for Jan 2013 and 2014, which obligate me to purchase the shares subject thereto for $2.50. So, if the stock's at $1.50 on the third Friday of next January, I will be owning quite a few shares, for which I'll have to pay $2.50.
Study this carefully, OPC gave you some good advice earlier, IMO.
