Thanks you the comments on this. I would just make the following observations:
1. I agree that there is no reliable way to value any stock option, particularly for a company at this stage of development where there are many risks (including the rewards!!). Even for an established blue chip stock there is no reliable way as it is all dependent on forecast volatility which is driven by traders, emotion, economic conditions, political announcements, etc rather than the company's fundamentals. If the company's fundamentals were the main driver of share prices there would be very little volatility in share prices as the fundamentals don't change that quickly.
2. Downside risk versus upside risk is a subjective assessment. Better to focus on volatility, particularly if the shares have been subjected to pump and dump as these appear to have been.
3. Without trying to understand the reasons for the volatility (and that is nearly impossible anyway). As I see it, if you bought the shares at $0.65. Worst case is you lose $0.65, if they return to previous highs for whatever reason of $1.65 you make a 254% return. If you bought the options for $0.05, worst case if you lose $0.05 and if they make it to the dilution adjusted previous high of $1.09, you make 2,180% return.
4. The record date for the options is tomorrow, and the decision to buy the options needs to be made by 14 August hence plenty of time to evaluate the 4C report.
Cheers
CPH Price at posting:
62.5¢ Sentiment: Buy Disclosure: Not Held