I was watching a vertasium video on the black scholes equations, in the video they mentioned that during the game stop surge, the reason why retail traders could bid the price of the STOCK higher was because they bought stock options . They said that 1 dollar could only buy 1 dollar worth of stock so buying the stock itself wouldn't be able to push the price enough, however, with 1 dollar you could buy options that could affect 10 or potentially 20 dollars worth of the underlying stock, therefore there is natural leverage in those securities.
How does this make sense?
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