When a stock becomes hard-to-borrow, the options will become more expensive. The theta will be equal to the accumulated interest charge until expiration.

Options can give you access to short-sales if your broker cannot locate shares to borrow. But in that case, what you need is not options, but a broker who participates in the securities loan market. Options will not provide a "free lunch" over simply borrowing the shares.

Of course, options do have the benefit of a truncated payoff. That's one thing you don't get with simple shorting.