I have my investments split roughly half and half between US and Canadian equities. I don't have any bonds as I feel that they are priced close to their maximum potential. Instead to offset a potential downturn I purchase out of the money Put options on the SPY ETF in order to hedge my US holdings. The trouble I'm having is with finding a similar vehicle to hedge my Camadian holdings. I investigated the option chains for XIU, ZCN and some other broad equity Canadian ETFs but they all seem to have very sparse option chains with virtually no liquidity and MASSIVE bid/ask spreads. How best to go about hedging my CAD holdings then? If Canadian option trading is so thin should just bite the bullet and purchase more SPY put options and deal with the very imperfect correlation between TSX and S&P 500 or is there a better way?