Beyondbreakeventrading, the question of asset allocation is an interesting one. Leverage-adjusted, I am pretty sure that real estate is the best bet, but these days even RE is highly correlated with the markets (or so it feels).
Option trading in it's purest form is a hedge against events such as rising oil prices or declining stock prices. When used singularly as a trading vehicle, options are not investing, they are speculation. No, options trading is not investing. It is gambling and is the preferred method of gambling for those who do not wish to place a stop and would rather have the idea of a "fixed" loss worse case scenario locked in---that is if they are buying and not writing.