Some good points re the options noddy. And this is the first...

Some good points re the options noddy. And this is the first time I have bought options in about 7 years of trading - so I am wary.

In your example the options might not be able to be sold on a price decline of 30% on the heads i.e. there will probably be a lack of buyers at any price.

However, one could simply hang on to them (as you note in your example) or, do the conversion and hang on to the heads and hope for a better market price later.

The reverse situation applies to the heads. I.e. a loss of 7c on the heads or, options is 7c!

Assume the ordinary share drops from 22c to 15c (all holders have lost 7c)
If one bought the options for 7c when the head price was 22c I have lost 7c as well (assuming no buyers for the options and why would there be).

All speculation really as losses and gains are realised when one sells.

Just my opinion and nothing else!