Also having half of your portfolio in this company is a bad idea, that is why I am a proponent of options since you get more for less in a boom or bust situation such as this. Cheers

It is more complex, the graph unfortunately can't predict intrinsic valuation with accuracy in small intervals. The reality is that the $5 calls will actually continue to depriciate relative to the share price increase until they track the share price with near accuracy. This means in clear terms that right now the $5 calls have a solid amount of intrinsic value built into them because we are still at risk of the share price dropping below the strike price, but as the share price increase upwards towards $10 or $20 the $5 calls will begin to lose that intrinsic value because they would be considered "safe" and less risky since they are deep "in the money."

The calls that are out of the $ will be the reverse of this. Because they are out of the money, as the share price increases in value, the value of the calls will increase much more rapidly as the share price becomes closer to the call options strike price. The basic principle of this can be seen if you look at the delta of a call option. So basically this statement by you: "until then the $5's are increasing in value much faster" is incorrect. What will actually happen is the exact inverse of this. I did my best to explain this concept/privide an example for a user a few months ago in this thread:

http://agoracom.com/ir/Mannkind/forums/discussion/topics/567265-why-options-are-better-than-warrants/messages/1784283#message

Hope this helps clear things up

I don't want to recommend overly specific advise on that play or I could get myseld into some trouble, however I will say that my perspective on MNKD is a little unique. To me the stock is make or break, therefore you hold as much as you can at the least cost base possible; thus in my case I would roll them into the higher calls while the cost base is lower due to the intrinsic valuation placed upon them as being "risky." In my eyes the 12 and 10 dollar calls are no more or less risky than the $5 ones because if MNKD gets approval they will all be in the money, if approval is not granted the stock goes to basically zero, so frankly who cares?

This is with current day figures benchmarked against buying the simple common. If you are in for the long haul the best options in my opinion value wise currently are the $10 calls just for the pricing and liquidity of them. If you are in for the short term approval then plan to bail, the best deal is the warrants as the share price would likely be sub $20. Hopefully this clears up why myself and others have suggested that flipping your options from the $5 calls to the 10's or $12 ones would be a wise decision for many. Cheers

You are best off actually flipping the $5 calls for the $10 ones on a day when the stock price is declining, as the 5's will retain value better while the 10's will decline at an exponential rate. cheers

I am just trying to help out this board in my field of specialty since when I researched this company this board provided the medical/technical advice needed for me to move forward