Generally speaking, options that are "out of the money" (i.e FPOs trading lower than exercise price) still have value, due to the leverage premium applied.
In the case of RSLO, they have value even when the FPOs are below 20c, as they allow a holder to have over triple the potential position and leverage.
Imagine RSL go to 40c on Machinga results, the options would go to about 20c. This is a 300% return on 5c options or a 100% return on 20c FPOs.
That is why holders own options that are out of the money. My exposure to the company is purely through the RSLO as I believe they offer excellent leverage.
Basically, if you swap from options to FPOs you will have less exposure to share price fluctuations, both positive and negative.
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