Add'l explanantions:- Why would you substitute stocks with ITM (in the money) Call Options like we see in the red line in the top chart:
a) Cash Flow: you pay out the option premium for the option purchase and receive the full value from the sale of the stock
b) ITM options are relaively cheap in premium terms compared to ATM (at the money) Options
c) The Delta btw the current Stock Price - ITM Strike Price functioned as an automatic stop/loss where you cannot loose more then the premium you paid out but still have the full upside
(for more explanations see here)
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