Hedging via options is guaranteed to cost more than the benefit you’d receive, over the long run. This is due to the volatility risk premium (the insurers again

Hedging via options is guaranteed to cost more than the benefit you’d receive, over the long run. This is due to the volatility risk premium (the insurers against risk must be paid, and will price it to come out ahead). See https://www.aqr.com/Insights/Research/White-Papers/Pathetic-Protection-The-Elusive-Benefits-of-Protective-Puts https://www.aqr.com/Insights/Research/White-Papers/Pathetic-... But no, you cannot hedge away risks of a recession - for cheaper than what a recession would cause.