MGTOD is a good option though for people that want to buy in...

MGTOD is a good option though for people that want to buy in now, but may not have the cash at the moment to buy heads at the current price. While they are currently trading at a premium, you may not be 'underwater' when you exercise them as you say, if the share price is higher come October. There is also a good chance that the options will be trading at a higher price over the next few months meaning that people can still trade them for a profit, or convert them to shares and also lock in a profit. All for a relatively low buy in price.

But I agree, at current prices, MGTOC are a more attractive buy if you plan to exercise soon, but again they could be risky if the share price continues to fall, and you end up outlaying more than if you had just bought heads.

Another option is to buy heads and if the price falls, continue to buy more so that your average buy-in price decreases. However with the way MGT has been trading, it may only be down for a couple of days, before it leaps up another 1.0 cent and starts to climb again.

Best of luck with whatever decisions you make, but regardless, just hold for the long term and it won't really mater what price you buy in at.