[xzins]

I never did understand how someone could make money shorting stocks unless they started with an enormous amount of money. Is that pretty much right?

[nascarnation]

Actually you can purchase “out of the money” puts pretty cheap.

Consider Pulte Co, one of the largest homebuilders, currently trading at 19. It was a single digit price during the crash.

You can buy Jan 2016 puts (right to sell 100 shares at 15) for 1.50.