option question , page-2

that is correct.. i would not recommend you have any options in your portfolio if the heads are not over 20c

if the heads are 21c and you have options on 30 june.. they'll probably be trading at 0.04 or 0.05

if you exercise.. you'll be able to sell at market at 21c.. when you only pay 20c for them.. so you'll make a gain of 0.06 to 0.05 on that transaction

but you are correct.. if the SP is 19c.. and you have options on the 30th.. DO NOT EXERCISE.. you can just buy on market at 19c.. rather than pay 20c

unless you have lots of money to throw away