Volume Spike Investor

MannKind Corp. (NASDAQ: MNKD) sees a very bullish purchase of 7,000 May $7.50 calls at the $2.50 offer with a $2/$2.50 spread.  Implied volatility is up 6.7% to 127%.  After selling off in early October shares formed a rounded bottom around $5.  Shares could possibly be a takeover target, and with Merck recently saying it is looking to expand in diabetes, it could be a potential buyer.  MannKind currently lacks a revenue stream but has a leading inhaled insulin product in Afresa for type 1 and 2 diabetes.  The Afresa PDUFA date is scheduled for January 16th 2010.

JOE KUNKLE, OptionsHawk.com