Hi, Steven: How does someone trade a "hard-to-borrow" stock like Taser International (TASR) when there are no options on it? Why do some stocks not have options? Thank you, --A. My personal reply to the reader's first question, which I received a couple of months ago, was a succinct "Very carefully," and included a link to this article , which explains the general process for listing options as recommended by the Securities and Exchange Commission. Implicit in the reader's question is an apparent desire to sell short or establish a bearish position on the stun-gun stock. However, since that question was received, a lot has changed. Taser shares have climbed about $35, or 85%, to the $80 range and now have listed options (they began trading on March 19). It now seems appropriate that I should amend my initial response to "Very, very, very carefully." While the addition of options provides a means to short the stock, Taser shares are still in short supply and extremely difficult to borrow. The influence of the tight supply/demand for the shares manifests itself in the options market in a variety of ways. The first thing to notice is the robust activity: The options are trading an average of nearly 5,000 contracts a day, and the April series has open interest of some 31,000 contracts. These are impressive numbers to rack up in just the first two weeks of listing. But it's not really a surprise, because trading in Taser's stock has averaged 10 million shares a day over the last month. This is despite the fact that its total float is just 9 million shares, meaning each share available to trade turns over every day. So until Taser can issue more stock, options provide a nice alternative for making a two-sided market. This is crucial for a stock that has tremendous short interest both in real terms (as of March 8, there were 3.7 million shares, or 40% of the float shorted) and desired intentions.