Ashiwi, another nice find, thanks for pointing that out! I looked on OptionMonster to see if there was comment, and I didn't find any, perhaps tomorrow.

There was also unusual activity in the Jan 2014 5.50's, puts and calls (about 1,700 each). Not sure I understand what is going on. Given the open interest figures, it looks like the trader may have been closing a position that the trader put on some time in the past (for Jan 2015, the open interest is lower than the trade amount, so that's why I think it may have been an unwinding of a previous position).

However, if those open interest figures are incorrect, then I suppose someone could have purchased the $5.50 calls and sold the $5.50 puts to help pay for the purchase of the calls, which would be an enormously bullish bet. Cuz if MNKD flops, they will obviously lose on both, especially the puts, depending on how low the share price goes. On the other hand, if MNKD were to go up, and hit $12, for example, it would be a homerun of some proportion!

The person would be sitting with control of 750,000 shares (7,500x100), that he could purchase for $5.50, and for which he paid a net of about $1.20, so for $6.20, he could own 750,000 shares worth $12, or he could just trade the long call for at least $6.50, about 5.5 to 1 on his investment of $1.20. He could then close out his put position for not much money, just to be safe. If MNKD went bust, our imaginary trader would be on the hook for about $4,125,000, on the puts, plus the initial net investment of $900,000, so a cool $5,000,000 loss.

Perhaps it will be written about soon; if not, then I would suspect it's a close of an open position, which isn't very exciting to write about.