Betting against the NASDAQ

This is purely hypothetical. Let's say the NASDAQ climbs to 6000 by august. You suspect it's going to crash. What options strategy do you use to bet against it that will net you max profit?

 

Buy NDX OTM puts

 

@what strike and expiration?

 

Expiration depends of course on when you think its going to crash.
I'd go roughly 5% out.

 

What do you do if it keeps climbing higher?

 

Why not bet with the Nasdaq? If the Nasdaq hits 6000 then the QQQ's will hit about 125. Buy the QQQ Sep20, 2014 100 calls @ $0.63.

By August they would be worth about $25.00.

 

Then you tell yourself "I was wrong" and find another trade. Don't start "adjusting".

 

Right now Sep 20 calls are @$0.63, but QQQ is only @88. By august, these calls would be much more expensive.

Yeah, you can bet with the NASDAQ right now, but what about when it peaks? What strategy would you use then?