IAM Market Activity Discussion, page-278

Think you are confusing yourself
Scenario 1 - I presume you are comparing keeping options and selling for a profit in which case
ASSUMING options will still trail by 0.8c when the shares are at 30c and assuming the oppies have not expired. Your profit would be (oppies at 30c less 0.8c = 29.2cents ($29,200) minus your price 3 cents ($3,000) = 26.c cents profit x 100,000 shares) -> $26,200

Scenario 2 - If you convert options to heads your total cost is 100,000 units at $3.8c ($3,800).
Your profit is at 30cents = 30c ($30,000) less 3.8c cost ($3,800) = $26,200.

It is when oppies are either ahead or at a premium that you gain leverage.
The assumption above is based on the 0.8c trail. If that increases or decreases, your leverage changes from this ZERO point so to speak.