Is anyone else out there following the Turkish Lira crisis?
In a nutshell, the Turkish president put his son-in-law in charge of the Central Bank, stated that he believes high interest rates cause high inflation (not that high interest rates are the result of high inflation), refused to raise interest rates to fight 18% y/o/y inflation, said that 'they may have their dollar, but we have our god', and then, if that wasn't enough, today said that citizens should change in their gold and dollars for Lira. Oh, and I forgot to mention the begin of US sanctions for something that started 2 years ago (thanks, Obama!).
So, in light of all that, the Lira has dropped 25% in three or four days, and 45% since the beginning of the year. Today I bought puts against the Lira. It has to drop another 15% for me to break even. Fortunately, I've got a month or two for it to drop that much.
Is anyone else out there doing this?