This is probably quite basic, but can you make the same basic return (as if you bought the underlying stock) by buying and selling options contracts in the future when the underlying stock increases the intrinsic value of the options? Say you bought a May Put or 10 for (C) for $3.00 expecting it to go down: The price goes from $4.86 or so to $2.00 Will the option's price scale directly with this? It seems like this is a much better alternative to shorting, where there is unlimited risk. My only worry would be that for out of the money contracts that less people buy, the price wouldn't be affected as much. I've heard of this being the case a long time ago, where options premiums didn't scale anywhere near their real value.