My experience MrDeeds is that once they hit the strike price,...

My experience MrDeeds is that once they hit the strike price, they continue to trade at a premium due to the % leverage advantage they offer. For example;

RSL 40c RSLO 23c

You have $5000 to invest. 12,500 RSL or 21,739 RSLO?

SP goes to $1.00 - options maybe around 80c? you have turned your $5000 into $12,500 if you bought the shares or 17,391 if you went for the options. Because of the clear advantage with going for the options when a stock is expected to go up, a premium is applied based on the leverage and the time left til expiry.

At higher prices you can expect the premium to reduce to almost nothing if anything. For example RSL $1.00 versus 80c for the options - not a great deal of advantage in going for the options as you would be talking 5000 RSL's
versus 6250 RSLO's.

SP goes to $2.00, RSL $1.80. You've turned your $5000 of RSL into $10,000 or $11,250 if you went for RSLO.

Anyway we'll see :)