Overstock & Options

I had been meaning to send Adam Warner an e-mail this weekend to ask him how you could play the Overstock.com (OSTK) situation using options. If you want to go long, you can certainly do so by either purchasing the stock or call options. But if you are bearish and wanting to profit from a decline in the stock price, then you must either short the stock or use some combination of options. There is no stock available for shorting, so that leaves options. Not needing any prompting from me, Adam Warner discussed how to use options in his article Overstock over the edge?. I like Adam's article because he provided a solid discussion of your options (pun intended).

I note that the stock is down $1.80 today to $45.07 for a 3.84 percent loss on heavy volume of slightly over one million shares. I have no position, either in stock or options.