I don't do overnight shorts , but have traded puts for a number of years. It's not a strategy that has been very good for me even when the market is sliding because of wild swings up often happening near option expiration before heading south again. I'm trading out of my IRA right now and shorting isn't allowed, but evantually I will be back in my regular account and I think I will short stock and buy calls to protect against a pop. That way your total risk is known and almost all the stocks and ETF's I've bought puts on took large drops that more than made up for the cost of the calls.