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RE: Steem Bounty - What is the Best Thing to Do When You Expect the Stock Markets to Plummet in the Next 6-12 Months?
You have to buy put options, let's say IBM is at 100$ now. You pay a few $ for the right to sell at 95 in 1 year. When the crash is e.g. 50%, you can buy at 50$ and use your option to sell at 95$. You make 45$ with a few dollars.
Writing out call options is similar technique..
That is an interesting one. I don't have any experience with put options actually. I will look into it. Maybe shorting some financials in the US is not a bad idea ;-)
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