Say you currently 100,000 shares ($2,100 at current share...

Say you currently 100,000 shares ($2,100 at current share price). You can buy 50,000 options with a .04 strike price expiring in 6 months for 0.001 so that's 50,000 x 0.001 which equals $50. On or before the options expiry date 18 Jan 2018, you can exchange those options for shares at a guaranteed price of 0.04 (which is 90% higher than the share's are selling for today). If it doesn't reach 0.04 by that time you option expires worthless and you've lost your $50.

If you don't believe it's going to increase beyond 90% by 18 Jan 18, there's no point buying the options. Take your $50 and use it to pay for something that you feel is actually going to be worth something to you.