Ann: Noosa Mining Conference presentation, page-4

Buying ESSO gives you the right, but not the obligation to purchase ESS at 15 Cents up to 30th Nov 2022. Any positive difference between the ESS Price and the ESSO price plus the "strike" (15c) price (eg ESS 0.24 ESSO 0.13) is often reffered to as "The time value" in the option. ie in this case...(0.13+0.15)=0.28 Minus ESS at 0.24 = Time value of .04. If there is no difference, the option is said to be trading at "Intrinsic" value. The benefits are in the leverage obtained. ie if the stock went up 100% to 0.48, intrinsic value of the option would be 33c....A 154% rise, even without the time value. Also, if it all goes Pear shaped, you dont lose so much.
Hope this helps
Q