Puts as Hedge against Real Estate Decline

[Sniper]

[ QUOTE ]
Isn't this scenario like buying covered calls to hedge against a stock price decline?

[/ QUOTE ]

With covered calls, you are limiting your upside potential in return for a small amount of downside protection.

With Puts, you exchange a small amount of upside for unlimited downside protection.

The calendar spread strategy suggested in the article I posted, is most successful when you are early in your decision to protect the downside, as you are actually able to reduce the cost of the insurance (sometimes to below 0)and still receive full downside protection long term.