Fair enough if you are going to trade the options. I'm not sure...

Fair enough if you are going to trade the options. I'm not sure that the option price will necessarily go in lock step with the head price share. Lets say that the head share goes to 6c. Are investors really wanting to risk an option price of 4c on the basis that the price of the head shares does actually make 6.5c? The options will always be priced on the price expectation at conversion time less uncertainty, so the person buying the options from you in the case above would have to be fairly sure that the head shares will reach at least 10.5c wouldn't they? And that's just the B/E point.
In the meantime added to your analysis is the additional "premium" which would be added to the option price which would come with each head share increase. That would be the time to flog the options off.

I reckon that your are following quite a risky strategy but good luck to you.