hi mate.. I wouldn’t call myself an experienced investor/trader...

hi mate.. I wouldn’t call myself an experienced investor/trader compared to some of the great posters on this thread.
Heads is just slang for the actual share/stock....

The biggest risk, and this goes with any option trading, is that the ‘exercise price’ is more than what the share is to be worth more on market at the expiry date. In this case December 2022.

So for example if in December 2022 for what ever reason the share price is trading less than the exercise price it would be pointless buying the options and they would expire ‘worthless’.

As in this case LRS exercise price isn’t massive and depending what you have purchased the option price for you can still convert them, albeit more than what you would pay on market but if you were buying the heads today at 3.7c and still held them you wouldn’t be much worse off.

I think in LRS case there will have to be a monumental bad circumstances of biblical porportion based on the facts and info provided by company announcements lately for LRS to be trading at leads than 1.2c in two years time.

i like this option due to leverage they provide. For example if I HD to buy 1,000,000 heads at current market price of 3.7c I would need to spend $37,000 ex broker fees.

if I bought the exact same options of 1,000,000 at current market price I would need to pay $23,000.

this leaves me $14,000 to buy another share and have more diversification.

Obviously if you are more bullish on LRS you may buy some heads to be on involved in CR etc just in case. I guess this is why everyone is different and have different strategies for trading and some cases need the cash ASAP

There is heaps of info online and YouTube to give you all the info needed to see if you are comfortable with this investment strategy...

I know this is a real basic and probably a little confusing explanation so I would suggest you DYOR before you purchase any financial instrument like options... good luck