If they were exercised at 2 cents then it wouldn't necessarily...

If they were exercised at 2 cents then it wouldn't necessarily be a bad thing because it would mean the SP is above 2 cents and that there is buyer support at 2 cents.

Dilution only truly occurs if the company receives less dollars per share than your buy in price. If I bought at 0.5 cents and the company receives 2 cents per share then my interest in the cash holdings (and corresponding enterprise value) is more. So if you truly are concerned about dilution, then you must think the options will be exercised which means the current share price must be a bargain by that same analysis.