Try the math with GOOG instead of ZNGA, and you'll find that shorting the stock outright is a lot more cost efficient than buying puts. The only way you make m

Try the math with GOOG instead of ZNGA, and you'll find that shorting the stock outright is a lot more cost efficient than buying puts. The only way you make money with puts on stocks like GOOG or AAPL with huge premium is if you hit a home run, ie. a massive move on the part of the stock. Sure, theoretically there is "unbounded" risk, but in reality, that's impossible, unless you're a fool. Overnight gap ups and gap downs mayb occur, and a good trader will account for this.