Hi OPC/Rak/Baba
thanks for your quick reply with several options on table. OPC, you are right, the stock doesn't need to make it to strike price of $5 for me to make money, but right now my options are really under water. I am probably still better off salvaging what I can and look into warrants or 2015 LEAPs. I agree with you, the lower the strike price the higher the delta and that would be my goal moving forward. I just never anticipated stock to go down to $2 range after 2nd CRL and that too for such a long time it's been dead money.
I have a question about purchasing warrants. For example, if I buy 100 warrants that gives me right to buy 60 shares of MNKD at $2.40 but what if I don't want to exercise my right to buy? Can I just SELL the 100 warrants at a higher selling price and make profit? I am trying to find out which would be more profitable? It might depend on the current stock price at that moment. plz shed some light on this one.
Baba, you are lucky to make a good decision of selling in time just before the CRL and even some right after CRL. I made a huge mistake of buying regular stock of large quantity at a peak price just before CRL and I bought Jan 2013 options to allow me average down. My timing was not right both times. keep us posted of how things work out with your selling puts Jan 2013. good luck with your strategy. I don't think i have the stomach to take any more risk and loss after what I have gone thru with mnkd last two years. it's wiped out my savings, my hard earned money.
again, thanks all for your valuable input. If the stock price breaks out to $3.50 range, the options will start to look better for me to sell. i am watching this closely for the time being.
