Hi Cally, Please see below. If I bought 200,000 OAs at .019c I...

Hi Cally,

Please see below.

If I bought 200,000 OAs at .019c I correct in thinking I would need to pay approx $3,800 now...

Yes plus brokerage, this will increase your average purchase price per share. You need to divide the total cost of purchase shares + brokerage over the amount of shares purchased.
Something you should learn if you DT or ST for double or even single digit returns.

and also a strike price of .008c an option making them worth .027c to buy?...

Yes and No... you pay the conversion (strike) price of .008c, if you want to them to convert to 'heads' at any time between now and 31 Dec 2017. When and if you do convert, will hit the market at what the current price is on the day they hit the market, so if you by them at .019c plus pay .008c, (2.7c total) and day they hit the market the heads are 3.1c, thats the price (your up), but if the market is down and say the heads are 2.1c, thats the price(your down).
IMO I wouldn't worry about conversion at this point as the options are following the heads, and 008c, is small change if you want to convert later. Plus the conversion date is two years away, much can happen in this time...

How do you know what the strike price is of an option? Is is on the announcement when they are issued?...

Yes they are announced at the time of issue, but your trading platform show this under details of the security.

Does the option to convert to heads occur at expiry (of course getting paperwork in well in advance to initiate that option)? ...

No it will occur some little amount of time after you convert, they will hit the market via ..See the 5 nov announcement on this page.

http://www.starstriker.com.au/announcements/2015

Are they normally cheaper than heads as I'm not sure what the advantage is at this stage. I know a lot of people are talking about leverage is that more so about not outlying all your money initially so you can buy more with an option to convert?

Yes they are cheaper, because the you still need to paid the option convert price, in this instance .008c, sometimes when things 'get wide' they trade at parity, not sure if I have seen them trade higher, but sure this has occurred..

Options typically trade to make higher returns and greater losses, that is what your buying.
Higher reward , but also higher risk... IMO (You must be sure they are right for you before you buy)

Options were good in this instance, because the conversion price was so low, and that it was a no brainier, if the heads were to run the options would follow, good if started buying at .004c

Also is the ratio of conversion from options to heads 1:1?

Correct

Last question, I take it that if I decide to purchase options that CommSec will then post the form out to me as I don't use a broker?

My understanding is this is process between you and the company secretary of the company you with to convert shares in, Call them to ask, Im not across all the nitty gritty, but understand it as... you need to fill in the forms /signed them , send them with your conversion cheque. They lodge the documents and update the register.

ALL IMO DYOR