Overpriced on a direct conversion yes, however say the SP went...

Overpriced on a direct conversion yes, however say the SP went to 5c

With 1.7c it would be 2.94x original investment.

However with a 0.6c option the option could potentially be 3c (using 2c strike price) or 6x the original investment, even if you wanted to do 0.7c to make it similar to a 1.7c buy we are talking 4.29x.

It is all about risk/reward so yes it is 'overpriced' compared to a share direct but greater potential returns... What you can also do with options sell some back on market to covert into shares.. E.g. at 5c SP you could sell 1 option at 3c (original purchase 0.6c) and then strike the existing option by spending spending 2c + which would be using 1.2c (2x 0.6c) in options to get an almost 'free' share or 1.2c.

Buy 2x option 0.6c = 1.2c (original investment)
Sell 1x option 3c = 3c (CGT on 2.4c though @ %50 tax you would be looking at 1.2c tax + original capital of 0.6c or 1.8c)
Buy/strike option 2c
Leaving -0.2c->1c left over, depending on CGT + 1 converted share from the original investment of 1.2c.

If it is less than 5c then you will need to sell more options to convert, if it is higher than 5c then you can sell less and if it doesn't get above 2c (or even 2.6c in this case) you would of been better off buying the share direct but this is how risk reward plays out .

Disclaimer - Not financial advice and this is my understanding go seek professional advice from licenced professional including a licenced tax professional too.