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If there is a 2:1 consolidation then the strike price and number...

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    If there is a 2:1 consolidation then the strike price and number of options on issue would also consolidate. So the strike would double to 40 cents and the total number of options would halve to 1.5 million.

    Otherwise you could consolidate the SOI by 10:1, put every option massively into the money and then have those options holders make a big profit, whilst diluting exisiting shareholders significantly. Take it to the extreme, you could consolidate the number of shares on issue to the point where the option end up being more than 50% of the SOI and an options holder could take over the company
 
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