The Deep In-the-Money short call can be used as a substitute for short stock, but there is no real advantage to doing so.
Option Trading Subjects:
Strategy: Deep In-the-Money Short Call
The Outlook: Bearish.
The Trade: Sell a deep In-the-Money Call with a couple months or more to expiration.
Gains when: Stock falls.
Maximum Gain: Limited by strike price sold.
Loses when: Stock rises.
Maximum Loss : Unlimited.
Breakeven Calculation: Strike price sold x number of shares represented + initial credit.
Advantages compared to short stock: Less margin required.
Disadvantages compared to short stock: Limited life.
Volatility: after entry, an increase in implied volatility is negative.
Time: after entry, the passage of time is positive if the stock falls.
Margin Requirement : The short call is considered "naked", and the minimum margin would be 10% of the strike price of the short call times the number of shares represented, but probably more.
Synthetic Equivalent: Short Stock and Short Put at deep OTM strike price. (A Covered Put.)