Risk is basically a new daily low, but you could go with a wider stop as well, or none at all and simply size it as a % of your account that fits your risk profile. If going with an investment type position, you would use part of your cash, for a non-leveraged SPY long position, I'd reccomend 10% at least, and you could buy puts at the money in SPY , or IBB , which you can sell for a minor loss once we're confident the bottom's in.
Or, you can spend half the cash on SDS longs as well, which would hedge the position with half the cash use.
The level we tested here, the speed line support, the VIX retracement BIG$ support, and the sheer panic makes this a possible candidate for a long term bottom in SPX , so don't miss the opportunity. Or, you can believe the boys screaming wolf again...
You can buy out of the money calls, or short cash secured puts for 1 year without much problem.
The best option is owning $SPY in my opinion, you get the dividends, and can treat it as part of your portfolio, and rebalance it periodically, or improve cost basis if viable, etc.
I'd rather sell options, to hedge during pullbacks, than buy options.
There're a few prime picks as well, like ABMD, TWTR, quite a few I posted recently, you can check those out.
There's been a pattern for a long time, and that is that shorting hasn't been a very profitable, or easy line of business in equities, but trading with covered calls has been great, so I'd favor that when applicable.
My instinct would say that we'll see a decline in gold and silver, since they rallied as a risk off play, but I don't feel 100% comfortable with shorting them (unless you're not long SPY or only trade commodities, otherwise, it's redundant as a risk on play).