I’m not one to actually go short shares of a company due to the risk and playing with only my lunch money and its gains. I go with some long PUTs say CFC or KBH January 08 puts and you can give yourself a lot of time to watch your speculation play out. The longer PUTs will cost you more due to the time value added into them but they can be a bit safer with short term volatility. Even WAY out-of-the-money puts can get you some good profits. I dropped my KBH Jan 08 $10 puts a bit ago because they were stagnating in my account. They have 5x’ed in the last week or so and they are still way out-of-the-money
If you happen to be In-the-money when the PUT expires I believe you become Short the stock automatically. CFC puts have been doing great and I may have the luck of riding them to oblivion. BSC puts were a great play about two weeks ago but there is now a lot of IV “Implied Volatility” cost in the puts that make them less appealing.
