IPO - The Hydroponics Company Ltd, page-246

One way to decide whether to get options (THCO) is to decide what you think the share price is going to do.

Say price is now 40c and its going to 80c. If you buy the share THC you will double your money. At the same time the options will probably go from 11c to 45c. This way you will 4 times your investment and at the same time instead of buying 1 share you can buy 4 options and make 16 times.

also at anytime you can send 40c to the company and convert your option into a share.

Hopefully this helps.