In my opinion, if you like a company and it is trading cheap enough, then you buy it. I have a hard time trying to predict short term price movements. That said, I do agree with your time line and thoughts on the timing of the price change catalysts. I don't know that the price will decline if there is further dilution since the additional capital will take away funding uncertainty. As for options, the Jan. 2014s are a bit too short dated for me, but the Jan. 2015s may be quite a bit more expensive.