Puts as Hedge against Real Estate Decline

[IlliniRyRy]

short IYR then, its a real estate index..equity instead of option

[Sniper]

Here's a recent article on playing the housing market using options, and a strategy for reducing the cost using a calendar spread.

http://www.thestreet.com/_tscs/pom/p.../10237407.html

Options are not for everybody, so please make sure you understand how this works before you try this at home [img]/images/graemlins/smile.gif[/img]

[cwsiggy]

I imagine there has to be some sort of put credit spread to exploit with the homebuilder stocks due to the inflated prices of the puts, but then again I'm sure all of Wall Street is aware of this...