This is trickier than it seems - stocks can take much longer to go broke than you expect, and the timing can be difficult. There can also be huge bear market rallies which can test your conviction.
For example in early 2007 I was super bearish on housing, so I bought puts on subprime mortgage finance companies, developers in Florida, banks with exposure to the bubble states etc. Out of my 3 main picks, 2 went broke and 1 collapsed 90% before being taken over.
However, my original LEAP puts which were 1 year out, expired before the stock went to zero. I actually had to roll the position for 2 1/2 years before finally the stock went to zero in 2010! This is despite it being a bank, and totally bust the whole 2007-2010 period with NO hope of ever making cash or surviving. Those suckers just kept alive somehow and the stock attracted moron buyers for 3 years. I did make about 6 times my money but during the move the stock once doubled overnight (short sale ban in 2008) and it was quite tricky to hold on for the whole move. I had a small position which is why I could stay in - if it was a 5% bet or something, it would have been harder.
So, I would definitely recommend ultra-long-term LEAP puts for these plays, rather than front month or even 6 month options. Secondly, I would focus on stocks you expect to go bust in the next year or so. That way if they lurch on 1-2 more years, you can still do well. If you bet on something that just sucks, it could still be around in 5 years and your puts just decay to zero each year.
Another approach is to sell bear vertical option spreads, and collect the premium. Just be prepared for some 100% rallies in the mean time - as long as your size is small you should be able to eat the loss and then roll over next month at a superior price. The problem here is that each time it expires you have to re-write at a lower price (if the stock is downtrending).
Anyway, good luck - this is definitely a strategy worth exploring.
