Id like to start a discussion on hedging and investment strategies to make money on this Crisis and the eventual crash in Europe. Ive heard of buying real gold, other precious metals, and puts on the Euro. But what else and how does one go about this without loosing too much money waiting for the Euro to fail?
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.
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? I didnt really understand the point of buying real gold. When the crash happens its not like we will be making purchases with gold at wal mart and such plus i have no Idea if im getting ripped off on the purchase price. When buying these spreads I know I wont be the only one nor will I be the biggest. How do I avoid a situation were banks might go bankrupt and not make good on the bets I made?
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.
most of europe is...and def wouldnt be sooner than we expect...most are expecting it now...or even by now...it just keeps getting prolnged
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.
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?