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It so happens that it's very easy to bet on that and put your money where your mouth is. Just buy some LEAPS puts on SPY. Don't even need margin for that. For
by H8crilA 7y ago
It so happens that it's very easy to bet on that and put your money where your mouth is. Just buy some LEAPS puts on SPY. Don't even need margin for that.
For example the SPY 2020/09/18 $230 put trades for ~$5.6 a share.
- Tempest1981 7y agoI've never tried this -- how would I do this using ETrade or similar?
- H8crilA 7y agoJust to be clear - I think you're wrong, so I don't recommend it. You need stock options permissions (don't know where is that in ETrade), and then you need to find options on SPY. Here are quotes on Yahoo: https://finance.yahoo.com/quote/SPY/options?p=SPY https://finance.yahoo.com/quote/SPY/options?p=SPY, select desired expiration date. Wait for VIX to be low so that premiums are cheap, and load up on those puts. And again, I do not recommend it. You'll quite likely lose 100% of the option premium you paid.
- Tempest1981 7y agoUnderstood, not planning to do this immediately. I've also considered trading the VIX, but the only ETFs I've found seem somewhat uncorrelated or less volatile. Can VIX be traded directly?
- H8crilA 7y agoYou can go long or short on VIX but read what "contango" is and what happened during the volpocalypse.