system
A chat on subreddit /r/wallstreetbets
human
Yeah, they're less risky *as* leverage but more risky than straight-up owned stocks. At the end of the day you're way less likely to have a stock drop to zero than an option, just by accounting for book value and lack of expiration.

gpt
Yes, in the above example, you only risked the premium, but the option is basically worthless if OPMM drops to $80, and you're out $2300. However, if you'd bought $2300 worth of OPMM you'd only be out $460 if it dropped 20% to $80