-Le Chiffre shorted the stock. Shorting a stock means you sell a stock you do not yet own (the stock is usually owned by one of the broker's other clients) in anticipation that the stock's price will fall. The aim is to sell the stock at the current price, then buy the stock in the future at a lower price. However, if the price of the stock actually goes up, you will lose money. Le Chiffre expected the stock to fall due to his plan to bomb the plane.
-after the plan was not successful he was informed that his PUTS had expired (therefore losing money).
-Puts are options on stock that allow you to sell stock at a predetermined price. For e.g.: You buy 1 contract (each contract = 100 shares) of Puts of Skyfleet @ a strike price of $10. This expires let's say, April 21st and shares of Skyfleet right now are trading @ $10. IF between now and April 21 the stock falls BELOW $10, to say $8, the owner of the puts can then buy Skyfleet @ $8 and excercise his option for the right to SELL it @ $10. Giving him a $2 profit per share ($2 x 100 = $200). Call options work in the opposite way (stock goes UP, you make money). In practice however, any profit is made in the option's change in price - e.g. Assuming for simplicity the put option above would have a flat-fee cost $1 to buy @ $10 when the stock price is actually $10; when the price fell to $8, the owner of the option would, instead of selling stock (which he may even not own), sell the option at fee + profit on exercise = $1 + $2 = $3, thus making a profit of $2 on a $1 investment, i.e. 200%.
However, having PUTS and shorting stocks are 2 DIFFERENT things. For a put option, you can't lose more money than you spent to "buy" the option to sell at a given price. When you short stock, you lose (or gain) the difference between the price of the stock when you sold it and the price at which you must buy it.
If you pay $50 to buy a put option allowing you to sell a stock at a given price and the stock goes above your stricke price, then you simply don't exercise the option and all you lose is the $50 you spent for the option.
However, if you short the stock by selling 1,000 shares of stock you don't yet own (essentially on loan from someone else) at, let's say, $10, you MUST provide that stock. If the stock increases in price to $15 per share, you would have to buy 1,000 shares at the current price of $15 per share ($15,000). Given that you've sold the stock for a total of only $10,000, you have lost $5,000.
Options are profitable for insider dealing on short-term information since they involve a smaller investment and the "fee" on short-term options are relatively low.
Therefore, that part of the movie was technically wrong in terminology.