It is reasonable to think that higher leverage comes with higher risks, which is usually true. However, a carefully designed and correctly executed options strategy can increase leverage without incurring additional risks. Let's take the example given in this article to illustrate this concept.

One crucial point that the example showed is that a deep in-the-money call option is essentially the same as an outright stock position. This means that future profits and losses in absolute terms are almost the same between owning the call option and owning the stock outright. Hence, a deep in-the-money call is not more risky than an outright holding of shares, despite the former having a roughly $2.5:1$ leverage in this particular case. The $\$10$ financial cost (i.e., the time value) is well spent to cover the leverage for a period of one year. Additionally, it also provides protection against a potential devastating surprise if the stock price drops more than $50\%$ to below $\$200$ within a year, regardless of how slim the chance. If that happens, owning this call option will result in a smaller loss than holding an outright stock position.