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>is there ever an
> advantage to out-right shorting a stock over the equivelent option play?
sure -
a/ you get 100 deltas (ie $1 profit per point move in your favor) right
away if you're right.
b/ some firms will give you credit interest on your outright short
c/ you are free from worrying about time decay.
your trade off in outright short:
a/ no upside protection, hence increase the risk
b/ usually increase your capital commitment esp for high sticker price
shorts
c/ cannot control when your short will be yanked by the institution loaning
it to you.
> Do data showing short interest in a stock or index reflect short option
> positions?
In stocks, no.
> If short interest data do not reflect option positions, how should that
> information be viewed?
Skeptically.
Gitanshu
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