Options are usually given to shareholders as an incentive or...

Options are usually given to shareholders as an incentive or added bonus when participating in a cap raise. They are as the name suggests...an "option" to buy ordinary shares at a later stage for whatever the conversion price is. In this case the conversion price is 0.205 cents with an expiry date of Jan 2026.

So, if you own 100,000 options you would need to pay $20,500 to convert them to ordinary shares. If you are buying the options on market (and were not given them through a cap raise) then you need to take into consideration the price you are paying for them PLUS the conversion price. If you paid 0.08 cents on market for the option then to convert them to ordinary share you effectively paid 0.285 cents which is basically the same as buying the ordinary shares. Buying the options on market means you're betting on the ordinary shares going up significantly so you don't have to front the ordinary share price now and can save money when you convert the options.

A convoluted answer but if you don't understand options be wary how much you pay for them. If the ordinary shares go down so do the options (hard) and if they don't recover by the expiry date you effectively lose all your money.