Insurance policy?

What if the market just collapsed.  A lot of people are saying by year end that it might.  What would be the best thing to buy put options on?   Or just buy Faz calls.   If the market were to crash by year end.  If you put 1k on Faz way out of the money calls maybee it would be a good insurance policy.  How high could it go? What would be a reasonable strike price?   It's interesting that there are 84,000 open interest  on Faz 155 January 2011 calls.  More then all other strike prices  combined for that month. 

Jeff,

I think that open interest might be misleading..who knows if those werent sold short when the price was that high and higher last year?

It also could be someone long who still has the contracts from those high prices.

Also the way that the contracts are priced, I wonder if those are for the pre-reverse price?

You would have to call a broker and get the definition of the option contract. I remember when I was a broker there were contracts which were not split adjusted and it would cause retail guys to make mistakes..

Maybee walls.  BUt I think I am gonna buy some way outa the money calls as insurance in case the market tumbles far from here.  A lot of scary things going on. 

These are very disturbing times to say the least....    Peter Schiff is one who rightly predicted the housing bubble years ago when people were labeled him a "pessimist".   In reality, the guy seems to paint a more "realistic" commentary about the market then most do. 

Read his latest commentary here;

link

HE is a genius.  I was very dissapointed that he lost the CT primary to Linda Mcmahon. I can't believe anyone with a brain would vote her over him.