I think an easiest way to short SP500 is via inverse ETFs: https://etfdb.com/etfs/inverse/equity/
These move in opposite direction compared to the particular index (times 1/2/3 depending on type).
I’m fairly sure that’s not the most efficient way to bet on this belief. The payoff is linear. So if I bet on the market going down 99 percent, I’d make 99 percent (or 3x that if the ETF is 3x leveraged), whereas the options bet payoff would probably be over a billion to 1.
Where are you getting a billion to 1 odds for the options bet payoff of the S&P going down 30% in the next year? Because if that’s true, I’d invest a thousand dollars in that and have a solid chance at becoming a trillionaire.
No, it is certainly not the most efficient, but it is the easiest to execute: if you have a brokerage account, you can just buy an inverse ETF and you are in a (leveraged) short position.
I’m fairly sure that’s not the most efficient way to bet on this belief. The payoff is linear. So if I bet on the market going down 99 percent, I’d make 99 percent (or 3x that if the ETF is 3x leveraged), whereas the options bet payoff would probably be over a billion to 1.
Where are you getting a billion to 1 odds for the options bet payoff of the S&P going down 30% in the next year? Because if that’s true, I’d invest a thousand dollars in that and have a solid chance at becoming a trillionaire.
A billion to 1 chance of a 99 percent drop, not a 30 percent drop.
No, it is certainly not the most efficient, but it is the easiest to execute: if you have a brokerage account, you can just buy an inverse ETF and you are in a (leveraged) short position.