making money off the European crisis

You are about a month late, but I guess better late than never.

To hedge long positions, writing covered calls is always a nice idea.

Also buying VIX call spreads into Jan will ensure protection in event of Eurozone problems going into next year.

Gold has been a common theme, but with what currency? If the crisis gets worse and we see a rush to safety in the USD, you could see a drop in gold prices.

Quote:

Originally Posted by norcaldrifter 

I knew I was a bit late but but I think there is still time to plan for the Crash. I was thinking of purchacing Put LEAPS on the Major Indecies like the SPY. Will the Euro crisis cause a Flash crash when Greece finaly defaults or will we just decline slowly throuout 2012?

A flash crash occurs when something unexpected happens. At this point I think we are all expecting the worst.

The way Europe us unfolding, there will be an orderly and planned default (if it happens) that the banks will be prepared for.

Quote:

Originally Posted by berniefalk 

Italy and Spain are also on the financial edge. The crash may come sooner than we all expect.

It seems difficult to me to speculate on a possible crash.

If anybody wants to hedge for the downside, these big +4% rallies are the time to do it

there will never be another flash crash.

One place to look is at the euro bailouts and who is contributing to them - follow the money. 

oh there will be another flash , a black swan .. i would bet on that.

Quote:

Originally Posted by mjoke 

oh there will be another flash , a black swan .. i would bet on that.

how do you know that? do you have in-depth knowledge of what the exchanges did post 5/6 to prevent against another? or are you just throwing out words like "black swan" just because they sound cool.

there will never be another flash crash unless something else actually crashes - like a 9/11 event or a nuke in NYC or whatever. 

On a non-event a flash-crash is no longer possible. 

Bump.

Any new strategies to play for the total collapse of the euro? I am not just talking about a greek default but rather the unsustainability of the curency itself. What are your thoughts on preparing for such an event? What, if any, cyclical securities will go unscathed? and where is there money to be made by such a happening?