trailing stops limit your risk to a percentage of your initial investment. Its the same thing as with purchasing a stock. That investment can also lose all its value overnight. Its less likely to happen ( less risk ) and its also less likely to really increase much ( less reward ). All options do is scale up the risk/reward.
It's extremely rare that a security loses all of its value in a short period of time. In the last twenty years I can think of only a few occasions where it's happened that quickly, and it's almost always front-page news.
Options, on the other hand, are constantly declining to zero value. It's how they work. If you end up out of the money at the end of the day, you bust out on that bet.
