Warrants and other forms of option are riskier than the underlying stock because. [causal]

    Warrants and other forms of option are riskier than the underlying stock because. [causal]
  

Warrants and other forms of option are riskier than the underlying stock because of their leverage, in other words because "a given percentage change in the price of the stock will result in a larger percentage change in the price of the option" (Sprenkle 1961, p. 189). An investor's attitude to risk could be conceptualized, Sprenkle suggested, as the "price" the investor was prepared to pay for leverage.
Donald MacKenzie, An Engine, Not a Camera, loc. 535