oppies, page-7

I've been reading this forum for quite awhile but this is my first post and as relatively new investor I have appreciated the knowledge and advice given here as well as some of the very entertaining banter I have a question re the oppies. I understand the basics of normal shares but options are a new area. I've done some reading and from what I can gather (feel free to correct me here please) the option price is a combination of time and value over the exercise price. If my understanding is correct does this mean that if the share price hit say 7c (prior to the exercise) the options would be valued at 1.5c (ie 7 - 5.5) plus the time remaining value? I'm holding 1M of them at an average of .4c plus 1m of the normal stock at an average of 2.1 so I'm very happy with this stock and feel lucky to have been able to get on board something like this within the first year of investing in shares. Good luck to all next week