What do you want to achieve? About linear operation above the laser threshold current or on/off-modulation?
The achieved modulation index is set by your input AC voltage and resistors, so if you want a stronger modulation, you'll change the parameters. Most simple RF modulation circuits are using 50 ohm generator impedance directly AC coupled to the laser diode, you normally won't intentionally attenuate the a input signal with 330 ohm resistor.
You didn't tell laser diode parameters (threshold, maximum current), so we can hardly decide whats healthy for the diode.