EL,If I thought that the sp was heading towards 5 cents I...

EL,

If I thought that the sp was heading towards 5 cents I wouldn’t buy either of them.

Presuming that the option price follows the sp after 10 cents (ie if fpo is 20 cents then oppies sell for 10 cents) then the cross over point would be 16.5 cents. That is if the sp goes higher than 16.5 cents the oppies will provide more leverage and better returns, if it does not then the heads are a better investment. (e.g. fpo raises to 16.5 cents that is a 90% gain, options rise to 6.5 cents that is a 91% gain)