Because you can buy 10000 options @ 0.20 or 4000 heads @ 0.50,...

Because you can buy 10000 options @ 0.20 or 4000 heads @ 0.50, if the share price goes to 0.60 you will have made $400 on your heads but potentially $1000 on your options. You are more highly leveraged with the options. Options are affected by time decay so if you hold them for too long you will lose some of the intrinsic value from this but if you are just trading them and the expiry is a long way out time decay should have much affect. The idea of holding them would be that the share price is well above the option purchase price ie 0.20 + the strike price ie 0.45 = 0.65 (well above 0.65)