In Nassim Taleb's book 'The Black Swan' he explains that there are many events, such as the 9/11 Terrorist Attacks or the Coronavirus Pandemic that cannot be easily predicted, but still have massive effects on the economy or politics. That being said, I would like to hedge against these events. I have two different ideas for what to do: SPY Puts In 2020, the S&P 500 dropped 35% at its very bottom. A put option with a strike of 375, premium of 9 cents per share, and expiry in 2 weeks yields a 77,000% gain ($6,900 per contract) if the S&P were to drop 35% (Assuming ceteris paribus) $9 is the maximum amount at risk. VXX Calls VXX Rose 440% during the stock market crash. A call option with a 50 strike, premium of 9 cents per share, and same expiry yields a ~50,000% gain ($4,500 per contract) if VXX were to perform 440% (Again, assuming ceteris paribus) Same amount is at risk. These trades will be continuously rolled until the black swan event happens.