Well, consider it this way...
Firstly assumptions:
Lets say you currently have 100,000 options that you bought for 0.006 (i don't care how many you actually have - it doesn't matter). Also, you have the cash to convert these options $3250.
You can do a few things: Convert the options, buy the heads, buy more options or do nothing. We'll ignore the last option for this exercise.
If you convert the options:
You now have 100,000 heads which you have effectively paid 0.0325 + 0.006 = 0.0385
You also have 0 options
If you buy the heads:
You now have ~100,000 heads bought at 0.032 (cheaper than converting the options)
Also, you still have your 100,000 options
If you buy more options:
You now have 180,000 extra options @0.018 with an average somewhere between 0.006 and 0.018 (280,000 total options)
Now, lets assume the SP gets to $0.10 (opt ~$0.067)
Total $ outlay in both situations is the same
Case 1: 100,000 x 0.1 = $10,000
Case 2: 100,000 x 0.067 + 100,000 x 0.1 = $16,700
Case 2: 280,000 x 0.067 = $18,760
Or, if it gets to $0.30 (opt ~$0.267)
Case 1: 100,000 x 0.3 = $30,000
Case 2: 100,000 x 0.267 + 100,000 x 0.3 = $56,700
Case 2: 280,000 x 0.267 = $74,760
Conversely, if the price goes down - lets say $0.01 - options will be basically worthless here - depending on time left you may be able to sell them for 0.001 or 0.002. We'll assume you can't sell them for a worst case scenario
Case 1: 100,000 x 0.1 = $10,000
Case 2: 100,000 x 0 + 100,000 x 0.1 = $10,000
Case 2: 280,000 x 0 = $0
So, the difference is you get more leverage from the options. Obviously, the risk with options is that they expire and they are worthless if there aren't 'in the money'. The point here is that the expiry is a long way off so you need to decide whether you think the SP will appreciate enough in that timeframe.
Anyway I am not a financial advisor so don't take my word for it - DYOR.
In summary:
Convert options: Limit downside risk, Standard upside benefit
Buy heads: Limit downside risk, Big upside benefit
Buy options: Huge downside risk, Huge upside benefit
Only you can decide what your risk profile is going to be!
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