That's the problem with learning all about options before actually caring for the reason they exist: risk management. Options can be replicated with a portfolio, which usually requires a certain minimum size. Investors with a lesser budget would then buy the smaller units of "risk management".

In a way portfolio management through risk diversification isn't free lunch. For example if an investor has $1000 he can't realize a portfolio weight of 10% in a stock that is worth more than $100 per share.