Thanks everyone for the answers.let me put in terms of $$take...

Thanks everyone for the answers.

let me put in terms of $$

take an example of 100,000 shares with following price

price at purchase @5.3c heads=$ 5300
price at purchase @2.3 for option=$ 2300

If at the expiry

SP @3c =$ 3000
you lose on heads 5300-3000=$2300

Option=0
you lose on option= $2300

else if,

SP@4c =$ 4000
you lose on heads 5300-4000=$ 1300

Option you convert @3c paying additional $3000
Option convert to heads total price =initial $2300 + $3000=$ 5300
you lose on option 5300-1300 =$ 1300

else if,

SP @ 9c=$9000
you gain on heads 9000-5300= $3750
Option you convert @3c paying additional $3000
Option convert to heads total price you paid =initial $2300 + $3000=$ 5300
you gain on option 9000-5300= $3750

so my point is if Option price + Strike price is = current share price at the time of purchase and as long as share price is above the strike price at expiry, owing option or heads is same risk in terms of $ value for long term. but potential to buy more shares with a given capital at present. Hence why options generally needs to trade with premium but yesterday was exception and good value to purchase.

Please correct me if my understanding is wrong.