HJ,Based on a quick check, it looks like these options have an...

HJ,

Based on a quick check, it looks like these options have an exercise price of 3c and expiry date of 30 June 2012. The exercise price is the price you must pay to convert the option to a fully paid ordinary share - so you would need to pay an additional 3c to convert the option to a share i.e. if you paid 1.5c for the option, then the total cost for the share is effectively 4.5c.

So what you are banking on is that some time between now and June 2012, the GOA share price is a lot higher than 4.5c (assuming you bought the option for 1.5c). You could then either sell the option for a profit or convert to a share and hold.

The risk being that the option may expire worthless if the share price remains below 4.5c in the above example. The reward being the additional leverage for each cent the share price rises.

Hope this makes sense.