No, because the unlimited risk of shorting is balanced (hedged) by the unlimited upside of holding the same number of shares via the ETF.

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parliament32 5 minutes ago | parent | next [-]

Yeah you're not wrong. I didn't think about it that way because you can't really break something out of an ETF basket, and you also don't control the ETF basket, but if you think those risks are minimal it's probably fine to just compare dollars-to-dollars.

Personally I would still probably go with the long put strategy unless the price difference is exorbitant.

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jocaal 22 minutes ago | parent | prev [-]

You cannot however sell only SpaceX shares from your ETF to cover your short's losses. So due to liquidity issues I wouldn't recommend your strategy.

	▲	Galanwe 16 minutes ago \| parent [-]
		What are you talking about? You don't need to touch anything about your ETF. You just have to short a single name on the side. Also there is no liquidity issue, we're talking SP500 names here, you'll pay GC, which should be around 25bps as the other comment mentions.