cant wrap my head around options, page-10

You are right to consider options. They provide great leverage. So if money is tight they are great or even when money is not tight because you can gain more exposure for less investment which can be used to minimise risk.

Your figures were slightly out, but the general understanding is correct. You really want to look at the current option price plus the strike price. Add them up. Then compare it with current sharepirce.

Then you can hopefully determine value. You expect to pay a premium for the leverage. The longer from expiry the higher the premium. Often when they are well out of the money or close to expiry then the premium is non-existent.

Also you need to determine if you are a trader or investor. Because you dont need to wait to convert. Often your return will be greater by selling the option after the sp rises. And means you never need to come up with the final stike price.

their are people that buy a million options @0.1c and have absolutely no ability to pay the ex price in 12months. But you can always sell or let them die and lose the initial purchase price.

I remember a couple years back their was a descrepancy with ADOO and ADO. I held both. So I started converting ADOO and sold some ADO while I waited for the transfer to become final.

Good luck.