In the money, means the heads are above the strike price of the option.
It comes down to one simple thing, no matter what you paid for them - when it comes decision time to convert them or sell them on market. If say you can buy a share for say 5c, or you can convert your option into a share for 4c. ie, if you want shares, then you are paying less on the day with the conversion process. Yes, you may have more tied into it if you paid say 1.2c of the option, but its about the opportunity in front of you, not the cost of your option to begin with.
Alternatively if the shares were at 20c, you could pay the same 4c to convert them.
Or you could sell them on market for approx the intrinsic value (20c - 4c= 16c) +/- any time leverage the market viewed.
I was in a situation different stock, where the conversion was 3c, and the shares were 22c, and i had to accept 16c for selling a large parcel on market because i didnt have the cash to convert. And the liquidity simply wasnt there. That was a fast moving stock, and the options took some time to catch up to the intrinsic difference. (market wary). If the stock was more moving sideways, building a support base, then i would have been able to get closer to the intrinsic value.
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