No such thing as diversification in a panic. During panics there is 100% correlation. Everything goes down at once, and fast. And commissions have nothing to do with leverage. Equities are far easier to learn to trade and provide better income over the short term but I believe the options guys have far longer longevity in this game then equity guys. Equity guys usually are gimmick players. In the late 90's it was internet stocks. After 2000, it was bullets. After 2003 it was pairs, etc. Option guys usually don't have to re-invent themselves every 2 or 3 years or look for a new edge.