Hey guys, I have a question to ask, just to make sure, that I...

Hey guys, I have a question to ask, just to make sure, that I understand the options correctly. I was given 2670 free options to be exercised at $1.25 until April 2011. Please tell me - am I right to think that the only way to exercise the options will be only if the sp will be above $1.25? I have never had options and therefore no experience. Thanks.
By the way, I have decided to average down, only that someone here mentioned that the sp could be going even lower if big instos sell. Maybe I should wait for a while. It is difficult to predict what will happen. Thanks for the good discussion.