Posted on 01/15/2015 6:00:23 AM PST by SkyPilot
I doubt this has much to do with Ukraine. It seems like much of the world thinks printing money will make things better. It doesn’t.
Much of the world seems to be brain-dead stupid.
They decoupled it because they could no longer sustain the continued printing of francs (and using them to buy euros) to hold the price of the franc down.
Yes, that excessively increased the number of people buying francs and selling euros since Europe is in trouble over energy.
I sat with FXF and EUO for about 2 years waiting for this to happen. It seemed inevitable.
When the dust from SNB's move settles in a week or so, I think it is almost surely correct to write EUR puts, perhaps 4 or 5 handles out of the money, and pocket the premium. For SEVERAL months, unless the psychos at ECB decide to do a Bernanke and print the hell out of Euro.
Frankly, just now, I'd much rather sell coffee puts. Look at the 160 March puts expiring 2/13, for example.
Good trading to you!
So lets get this straight, Belgium and France are killing jihadists, and Obama is releasing them from GITMO?
HEY.......SEND THEM TO FRANCE AND BELGIUM!
Yes, e.g., the 2000 collapse of the market seemed inevitable long before it actually happened and you can get killed trying to fight the popular ‘irrational exuberance’. With the euo/fxf play, however, it was a wash until a decoupling actually happened, and the only risk (other than opportunity cost) was the unlikely event that after a decoupling the euro would outstrip the franc, which was a very unlikely possibility.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.