Could I please ask a question about the options? You're talking...

Could I please ask a question about the options?
You're talking about them being bought and sold at 003,004,005.. has the contract already been written and the strike price is .02??
So for simpleness sake if I buy 1000 @ 005 and the strike price is 2c, then I sell before the execution date anf the the share price is 3c how much money would I make.... OR if I exercise the options do I get that number of stock in my portfolio at 2c and then obviously could sell as normal shares at 3c+ or whatever....
Am I on the right track, its confusing because 1000 options is only $30 which doesnt seem like much at all, but 1 option is 100shares right? So thats really 1mil shares on execution?