Different approach / risk to investing as some reasons why you would choose one or the other.
SHARES
If you buy the shares (at slightly higher cost than options) you own part of the company. You also have the right to vote at AGM'S.
If the share price goes up or down, you can still sell for the price of the share at any time in the future.
(Notwithstanding something like the company going under etc,in which you may be pushed to the back of the que, preference shares etc).
OPTIONS
Gives you the right to buy shares in the company in the future at a predetermined price.
Has time limits (Expiry dates) and also price limits as to when/if you can convert the options into shares.
Options will have a price limit, a "Strike price" when the shares reach a certain value, that's when you can convert the options into shares and you're good to go.
Until it reaches that level you are "impotent" for want of a better analogy as far as changing them to shares.
You can still sell your option at any time though like a share.
The risk is the shares may not reach the "strike price" to be able to convert your options before the "expiry date" or may reach it then drop back below the strike price.
As time goes on and say the share price hasn't gotten high enough to reach the strike price then the options decrease in value proportionally as it gets closer to the expiry date.
If the share price doesn't reach the strike price or the option isn't converted for whatever reason (maybe you don't have the extra funds needed to convert them) the options expire worthless, whereas shares would generally still have some value.
Generally the majority of options expire worthless or "Out of the money"
Options do give you greater exposure (larger POTENTIAL) volume as they are cheaper than the shares and IF the shares go up in value substantially above the strike price for instance and you've brought options instead of shares using the same amount of money then you may end up with a much large holder after conversion (costs).
This is why you'll hear so much talk specifically with XTVO on these forums as the expiry date for this stock is a fair way into the future and the strike price is very low, the combination to some is quite attractive compared to options with other stocks.
Having said that there is still RISK, nothing's guaranteed in life.
Do some research, ask some more questions and ensure you're well informed before you take any action.
Others on the forum will have a lot of experience with options and can give more advice to you.
May pay to go back over general posts and search for the topic.
Also lots of info elsewhere online.
XTV Price at posting:
2.9¢ Sentiment: Buy Disclosure: Held
(20min delay)