Long term hedge for flash crash

[al3x]

Yeah it would be more for a black swan kind of event, where it is uncertain if it will go back up again.

 

[al3x]

I found a backtested strategy with buying 30% out of the money puts with 4 months to expiration, that are rolled over after 2 months, having an annualised cost of 0.78%, which is pretty low.
I would rather have SPX options instead since they have wider opening times for trading than options on SPY.

https://seekingalpha.com/article/43...ack-swan-events-strategy-pays-off-in-long-run

 

[newwurldmn]

I found a backtested strategy with buying 30% out of the money puts with 4 months to expiration, that are rolled over after 2 months, having an annualised cost of 0.78%, which is pretty low.
I would rather have SPX options instead since they have wider opening times for trading than options on SPY.

https://seekingalpha.com/article/43...ack-swan-events-strategy-pays-off-in-long-run

This is a very complicated question which is the most research part of options theory.

Even this proposal is very tricky as it may not earn on a selloff.

Most tail/black swan funds fail. The rest obfuscate their pnl performance.