Got it. So realistically, it would make sense to convert it once there is some decent price movement over the $50 strike price. If you convert at exactly $50 and sell, you are basically getting your initial investment back and no longer getting yield on it. Once it moves significantly higher, say $70 per LSTR, then you would be getting your initial investment plus $20 per LSTR, so you could conceivably be making more total yield on those dollars than you could on the initial investment. You just have to find a new place to put that money that gives you that yield. Thank you!
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Yes exactly right
Essentially, the opportunity cost rises as LSTR over performs the $50 strike. You'd do better to convert to LSTR shares and then sell and find another income-yielded product as you'd be significantly "in the money" and can use those proceeds to earn more income with a higher cost basis