Hi Sally. I have converted options a few years back in PEK at 2c...

Hi Sally. I have converted options a few years back in PEK at 2c from memory when the SP was 5c and they went into the high 90's. If options are in the money they will be converted 100%. Punters here may sell but the conversion will happen guaranteed. Plenty of big fish look for arb' plays for the desperate to get out. That's why the closer to the exercise date the more likely the spread widens.
ATM options are a fantastic leverage play but carry the risk of expiring worthless if the heads fall under 4c by December. The leverage means that if say SGC goes to 40c then SGCOA would be 36/37c.
So lets take current price of 9c for the heads and 5.3c for the oppies. Heads would go up 4.4 times vs oppies nearly 7 times. That's why people by the oppies. It is purely a leverage play until close to expiry. As long as they are in the money they will be converted and the company will put another $5m in the coffers for a small amount of dilution.
My plan is not to convert but to sell when the time is right.
I still believe that SGC will be the price driver soon in this drill and subsequent. SGCOA and XST will follow. XST will get massive support until around 5c I feel then the swing will come into SGC more.