$Apple(AAPL)$ Let's look at AAPL, which is currently ~$227/share. If you bought 100 shares, you'd spent $22,700. If it runs up to $240 a share, you made $1300 in profit. Your max loss is also $22,700 for this trade.
If you buy four Jan 2026 $195 strike calls, you'd have a smaller max loss of $20,200 and would make anywhere from ~$4300 to $1500 if it hit $240 a share in the next 200 days. Your payout at a $240 target starts getting worse than the shares after about 220 days, until the calls eventually expire worthless after Jan 16 2026.
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