Fair enough, OPC. Well, first, we don't know for sure when the dilution is coming, second, we're not 100% sure the dilution will be greeted with selling, third, I'm happy with the premium I got now. At a $1.50 strike price, part of that premium is based on the uncertainly as to whether MNKD even makes it to Jan 2014. Let's say lots of money is raised, and plenty of dilution is part of the deal, then, even though the stock may well drop, a big part of the existential uncertainty premium will be gone. So let's say the stock was cruising at $2.50, the dilutive event occurs and the stock immediately drops to $1.75 - that Jan 2014 $2.50 put may not be all that much above the .42 I got for it today.

And I do anticipate and hope that the stock does climb as we near Jan 2014. Finally (actually, if I really think about it, I may be able to come up with more reasons), if the stock does drop after a dilutive event which, IMO, ensures that the company will see one more "day in court" with the FDA, then, what's to stop me from selling more $1.50's or even $1.00's right after that drop?

It's a very fluid situation. And it's a lot of fun to do, never had this much fun at a job before!!