Hedge fund investors considered, in 2020, that Game Stop (GME) will decline in price, as COVID-19 kept customers out of its physical stores, and shorted the stock. However, a large crowd of Reddit users decided to buy GME, sending the prices up from about$20 to over $340, and forcing many hedge funds to face margin calls and close their positions. The stock volatility, also, spiked considerably. Assume you are an investor and observe that GME stock price increased to over $300. You want to bet that it will fall. How would you do this?

I will buy call options.

I will buy GME, because with such high volatility the prices are poised to increase, and I could sell at a higher price.

I will buy put options, because my losses will be limited. Put options are affordable, because the stock volatility is high.

I will short shares, if it easy to borrow them, or I will short call options, because the call options are expensive due to the increase in volatility, and selling these expensive options will add to my profit.