This is not always the case. Options can create or destroy wealth.
For example, let’s say you are buying the option of a stock trading around 100. Ashok Leyland looks like a good example.
The price of Ashok Leyland 110 ce is around 2.65 rupees. Its lot size is 4000. Total cost is 10600 rupees.
Price of Ashok Leyland future is 106.7 rupees, 60 paise above the stock price pf 106.1
If i bought option, during expiry day Ashok Leyland stock is trading at 110 rupees, then my loss is 10600 rupees. The loss in option is fixed amount even if stock is trading below 100 rupees.
If i bought the future and Ashok Leyland is trading at 110 rupees during expiry day, my profit is around 12000 rupees per lot. But buying option results in loss if the stock is trading at the same price
The real trouble in future is, imagine the stock is trading below hundred during expiry day, i will be in very huge loss. There is no fixed maximum loss like options.
An optimal solution is following an option strategy with a view of the stock. We should ensure the risk reward ratio of atleast 1:2 and maximum loss in the strategy is limited. Because a fall like yes bank, dhfl, infi beam and many more stocks will erode the capital if risk is unlimited
I think Zerodha is providing margin benefits for options strategies.