Let's take an example, say you want to buy NVDA at 100, that will require 10K investment (let's assume NVDA is 100 now).
If you buy 12 month out leap with strike price of 50, you may pay $60 per contract. So, you invest 6k for an equivalent of 100 shares of NVDA with strike price at 50
If NVDA really crashes and goes all the way to 20 next year, you would lose 8K if you hold stock, but only 6K if you buy leap.
If NVDA goes to 200 instead, you would make 10K if holding stock, and 9K if you buy leap (because your option is worth $150 when NVDA is 200)
