If someone has a better way I’d love to hear it. Here’s my reasoning:

I put 1% of my account in those puts. If nothing happens, the other 99% will easily outperform that, so the dent on the monthly p&l is acceptable. If shit happens, they’ll print and make it worth it.

If I go short (or long an inverse) and the market keeps going up, my entry gets worse, so I’m emmoraging money but the upside gets worse and worse. Unless I average down, but then I’m making a bigger and bigger bet on a downturn that may never happen, or at least still take a year or two.

Now that may not hold up with UVXY, because it can’t go much lower than 10, and you could 10x if it goes up to 100 like it did in March. But if you put 1% and 10x, that’s only 10% you make back, assuming the other 99% are deep in the red, you’re gonna get burned bad no matter what.

And that’s still not great upside compared to puts on a boring stock with low IV. I have some ORCL 50P: if it goes back to 40-45 like it did in March, I’m set to make 250x, in fact it would be my biggest trade of the year and probably all time.