OPC, it's either your reading comprehension or my poor explanatory writing, or some of both.

I'm not sure where you got the notion of me suggesting "the possibility of hitting $1.50 but not until after 1'14." I agree that any dive in price would likely be before that time, for the reasons that concern us now. Again, the event that I would not anticipate happening until January 2014, is the actually putting of the stock to me (assuming that the price of the stock is then below $1.50); I'm not anticipating the stock to be at that price in Jan 2014, I'm hoping it will look more like $4 at that point (assuming the S&P hasn't tanked to 900 or worse by then!).

But, I have only the wildest guesses (based on my past guesses) at what price the stock might be in Jan 2013 and/or Jan 2014. But, I do know that I'm safer selling a naked put with a strike price of $1.50 than one with a higher strike price, and going out to Jan 2014, gave me a higher premium, and allows me to weather a possible dip in the price, which we both think may happen. Additionally, there's a chance that by Jan 2014, the stock may be on the rise in anticipation of good news from the FDA.

If this is still unclear, I'll try my best to explain it again, but it seems a reasonable strategy to me, in order to generate income from this stock while I wait an unreasonable length of time for the fricken FDA to get around to it again.