last day , page-33

"So what punter are hoping for is the share price rising to something like 10c which would mean the option is worth 2 cents. "

Yes 6ULDV8 that is correct obviously and the return you indicate if that is achieved is also true.

But there is also the possibility of gaining a profit if the head share tracks upward towards 5 cents or 7 cents ....anywhere above its present level.

Take the example of the present price. Main share at 1.2 cent and options at .02 cent. Say someone bought some options today at that .02 cent level.

If the head share was to rise by another 1.2 cents to 2.4 cents in a months time then the options would be rising too in more or less tandem. Maybe they would not quite climb as much as they could have some months ago because we have just about 10 months to go now to conversion/expiration. The closer we get the riskier it is to hold options unless it looks as though the head shares will be in excise of the excise price of 8 cents by a satisfactory margin (say by 2 cents).

But you could sell your options in early next year if the head share is about 4 or 5 cents and still do alright if you bought the options at the present level.

Just depends on your strategy and your risk profile.