Replies to post #50204 on "House of Pinchers" (Pinch)

[jimmenknee]

Fair point interloper-- it depends on the strike price and premium for the options; but generally a movement that would cause an option to expire worthless is a lot greater loss (more than 2x) than if you purchased shares.

That is the greater risk and contributes to why many would argue to stay away from buying vanilla options.

[NewbieViewbie]

I think the exposure is limited to the initial outlay when you buy the call option, where as if you buy the stocks outright, you have the full exposure of the initial outlay of almost 10k