I am having a hard time trying to understand why buying call options are more profitable (if you predict the market right), compared to selling & buying stocks right away. Let me explain my confusion with an example:
Let's say the stock price of GME is currently 10 dollars. I buy a call option to have to right to buy it for 10 dollars, I pay 2 dollars for this. Then let's say that GME hits 20 dollars. I exercise my call option, and in the end I make 8 dollars of profit.
However, wouldn't I make more profit if I bought the share for 10 dollars, and sold it for 20 dollars? Wouldn't this approach give me 10 dollars of profit?