How does shorting a stock make it go down? (ie bear raid) is it simply bc other traders notice the rising short interest? What does the VIX index tell you and how do you use that information? How did bear stearns lose so much cash so quickly? I've been doing a lot of option research, and for some reason it seems like the overall consensus is that you (for example) buy a call option and hope you hit your strike, if you dont, you lose money. yet, depending on how far out of the money you bought, the option price will sometimes double or triple or more if the stock rises even if the strike price isnt met. i understand of course that the option is worth nothing on the expiration date if the strike hasnt been met, but if you buy say a $0.05 option (say 3 weeks before exp) if the stock goes up substantially that same option may be worth $0.10 or even $0.40...4 times your initial investment. at which point you could simply sell it. i know that is risky, but ive watched it happen quite a few times. why do no books mention this kind of speculation? am i missing something? don't flame me too much.