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!
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.