Limited risk in that for the short there is potential for an unlimited loss (-infinity), while for the put option the maximum loss is the premium (-100%).
But the option strategy is much riskier as a loss of -100% is significantly more likely under the put option than the short due to implied leverage, time value decay, etc.
But the option strategy is much riskier as a loss of -100% is significantly more likely under the put option than the short due to implied leverage, time value decay, etc.