/biz/ - Business & Finance

If you're day trading and you set your stop loss so that you can only lose $100, why not instead just buy $100 worth of call options?
In the first case, if your stop is hit your $100 is gone *poof* but in the case with the option, you still can only lose $100 but no matter how low the price goes in the interim, there's still the chance that it'll come back and you can exit at a profit.
I see no disadvantage using the option here. Either way you can lose max $100 but with the option you have until expiration before it's a total loss whereas just trading shares and setting stops, once the stop hits there's no coming back. What am I missing?

>>12387788
Yep, never gonna happen, r-right femanons?