To be fair if she was simply buying puts and calls that is not a leveraged position, the most you could lose would be what you put in, same risk a buying a common stock. She would be leveraged and in risky positions if she sold those puts or calls. Buying puts and calls actually is a way of protecting oneself from other leveraged situations as selling say a stock short or buying on margin.
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To be fair if she was simply buying puts and calls that is not a leveraged position, the most you could lose would be what you put in, same risk a buying a common stock. She would be leveraged and in risky positions if she sold those puts or calls. Buying puts and calls actually is a way of protecting oneself from other leveraged situations as selling say a stock short or buying on margin.