Therin lies the rub. With options, you're making a double bet :first that it is overvalued, and second that you got the timing right. If you're wrong on either

Therin lies the rub. With options, you're making a double bet :first that it is overvalued, and second that you got the timing right. If you're wrong on either, you lose money. You don't get the really huge blowout risk due to the stable nature, but the other two still apply.