Please excuse my ignorance, I am a bit perplexed by the way you...

Please excuse my ignorance, I am a bit perplexed by the way you guys are discussing the options.

My understanding was as follows:
You pay $2k for 16,000 shares and 8,000 20c options.

Share price (optimisitically and for sake of simplicity) runs to $1. You convert your options, paying the $1,600 and sell for $8k. Baby happy days.

What it seems to be being said here is that the options value raise in price along with the share price? How is that calculated? You can then just sell the options on the open market for the new value? For it to be work the $6.4K profit as mentioned above ($8k sale at a dollar minus cost of conversion of $1.6k) the options value would have to get to 80cents? Is this likely to happen?

Thanks in advance to any responses, options are very new to me. Assumed they were only for the big boys.