Are options riskier than stocks?
Options are a tool, and the risk depends entirely on how you use them. A long option risks only the premium you paid — often far less money than buying the shares — but because it can expire worthless, it is easy to lose 100% of that smaller stake. So per dollar the risk is concentrated, even though the dollar amount is small.
Used for protection, options are actually less risky than owning stock alone. A protective put sets a floor under your shares; a covered call lowers your cost basis. In those roles they reduce risk rather than add it.
The real danger is leverage and selling uncovered. Options let you control a lot of stock for a little money, which magnifies both gains and losses, and selling naked options can lose more than you put in. Options are not inherently riskier than stocks — but the riskiest ways to use them are far riskier than simply holding shares.
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