When I first learned about call options, they struck me as something that should appeal to the average investor, because they limit downside risk — and most people don’t mind a volatile upside so much.
As Stay Away From Stocks notes, Boston University’s Zvi Bodie has been recommending “risk-free” investments, like Treasury inflation-protected securities, or TIPS, and — for the daring investor — “out of the money” call options on a market index.
I suppose that matches most people’s risk profile.