The point of the post was to respond to a query on the ADOOs but...

The point of the post was to respond to a query on the ADOOs but it wouldn't accept the post under ADOO.

As far as the clock starting again when the options are exercised, that's not my reading of it or the advice I got from the ATO. Based on what they said, a share acquired by the exercise of an option bought today would have an acquisition date of today i.e. 12 months from today, only 50% of the capital gain in excess of the purchase price of the option plus the 1.2 cent exercise price would be taxable. As this potentially impacts on the outcome for those considering holding LT it may be best to seek professional advice before buying the options.

In regards to the advantage derived from buying the options over the heads, if the heads were to go to 20 cents by September then my 5c option plus the 1.2c exercise would give me a profit of 222% whereas if I had simply bought the heads at 7 cents today the profit would be only 185%. This would apply regardless of how the options relate to the heads from now on.

Of course I was pretty much mathematically challenged at school so if my calcs are not right, please do correct me. If I am wrong, I would like to fix the error and go back to the heads.