These are indeed some of the downfalls to options but on the most traded ETFs options should have enough liquidity until you start to get into multi leg strategies you’ll notice less liquidity. As far as less risk, depends how you use them. I didn’t read the article but in studies I’ve seen the average option buyer uses OTM short term options because they’re cheap and holds them like an investment. That’s why they lose more. If someone were to fully understand them I feel it’s truly possible to use options to limit risk.
Now i use options now for swing trading indexes. Bit larger spread than futures but less cash at risk and also dont get whipsawed out of trade (dont need to watch as much if full time job). Can make unlimited profit profile if you want but yeah like most of this game all comes down to knowing what your doing and predicting the future........
actually..."if a small # of your trades nets bulk of profits" is the profile of your portfolio, a long gamma option portfolio may really help your returns.
I’d truly suggest OP to practice both at the same time on the same set up and exit and see witch nets OP better. Take a position in outright shares and an options contract out and see witch performs better.
%% One advantage of options, mr Bugsy,=lower cost. Thats why Mr Hunt+ many the TX wildcatters/big oil used /use them. Many ETFs pay a dividend even on a stock trade; which why i use ETFs more.Believe it or not leverage ETFs decay , but some pay a real, real small dividend...........................................................................................