You are forgetting about the money already spent in acquiring the options to begin with.
I have already spent north of 5 cents per LMGO. I then need to spend a further 4 cents per option to convert to LMG heads. Total cost to end up with LMG heads is north of 9 cents, when market value is 4.6 cents. I would have payed a relatively large % premium.
Whether that premium is worth is, refer to my previous post.
However, if current market price was, say, 20 cents, it would be a no-brainer to convert. Original cost of 5 cents for options (I'm rounding down now) + 4 cents to exercise = 9 cents total outlay, for something with a market value of 20 cents. I'm 11 cents in the money.
And your last paragraph makes no sense at all. To start with, as clearly stated, the options cost more than the current market value of the heads, not less.
