the money made on the option would be higher if based on a % return due to less capital being used to enter your position though correct?
How do I unread something? I think my IQ fell by 30 points reading this. You don't use percent return?? How do you compare strategies?
They're 2 different things that shouldn't be compared, even though options derive from underlying, that is only part of what an option really is. Options are multidimensional and nonlinear unlike options. Some people don't want that, some do.
The returns can be nonlinear, in other words, multiplicative. Nonlinear has a payoff function that is convex. Linear has a payoff that is.. linear.