How to bet on recession in <1yr?

How do I actually buy longish term puts without being an idiot and losing all my money? If I think the market will tank in less than a year what is the actual educated way to bet on this and make upside without gambling and losing all invest capital?


Happy to be pointed towards resources as well - apologies if this is a dumb question around here.

 
Most Helpful

It's really hard to be profitable off any macro downside… premiums are through the roof for retail (and likely for the street unless you find some insane equity swap/ exotic).With that being said… your best bet your probably be to long VIX or inverse S&P index. You'll likely overpay for cons, but shares might be doable if you can time it half decently. These products tend to decay over time though.Alternatively, start selling covered puts on S&P. If you're bearish and structure them correctly, you could collect nice premiums on the way down.These are just ideas. I am not a Wall Street profession (yet). Please listen to people who actually work with these products on a daily basis.

 

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