alohakevin, ... The email I received said I had an option to purchase a block of 80K Starpoints for $1,550. If I exercised it, Starwood would add another 4K Starpoints for a total of 84K Starpoints. I figured my cost per Starpoint would be $0.0185. So, I called to purchase.
When I called, the agent said that the offer was a renewal of an offer included in a developer purchase I made 2 years earlier (without the extra 4K Starpoints). And, I was told I had not exercised 6 options to buy 80K Starpoints at that price. So I exercised the 6 options and realized 504K Starpoints for $9,300.
Later, I was making a StarOption reservation during the offer period and I mentioned that I had just purchased the Starpoints and thought it was a good deal because I like using Starpoints and needed some. The agent checked and said that I had another 6 options that I could exercise from another earlier developer purchase. So, I exercised those 6 options, too.
My experience leads me to believe that the offers were tied to previous developer purchases where options to purchase Starpoints had expired - but were resurrected. I believe the email went out around 6 months ago. IIRR, the renewed offers expired on December 31, 2011.
Making good use of Starpoints is like using II. You have to work at it. It's not for everyone. But, there can be valuable rewards.
Last month I transferred out 360K Starpoints to my air miles program. Starwood added 20% because I am 5 Star Elite and the airline added a 50% bonus. For $6,660 (360K x $0.0185) I ended up with 675K air miles or the equivalent of about 6 round trip business class tickets from Chicago to Europe or South America (or a price of $1,110 each). Salty