[DcifrThs]

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when you buy a call option, you have the "option" of exercising the contracts at the strike date to purchase the stock of the security, or you can sell the option for whatever premium the market currently values it at.

you are not a shareholder when you buy options - so you get no dividends or shareholder benefits

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more directly, continuing w/ OP's analogy, in the option scenario, the most you can lose is $20.

in the stock scenario, the most you can lose is $100.

you pay a premium for the right, BUT NOT OBLIGATION, to purchase some amount of the underlying security between now and the date of expiry.

in actuality, it doesn't make sense in most instances to ever exercise the option though (barring dividend payments) since arbitrage makes sure that the prices of all things concerned are close enough that selling the option is a dominating strategy (better than exercising).

Barron