You don’t need to own the underlying, you just need to define your risk by, for example, buying a far out of the money call. You would need to have funds to cov

You don’t need to own the underlying, you just need to define your risk by, for example, buying a far out of the money call. You would need to have funds to cover the buying power tied up but many options plays like this would be done over a short period so it can be viable.