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Unconstitutional Patriot
Join Date: Apr 2000
Location: volunteer state
Posts: 5,620
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Wayne, your numbers look good. On the buy scenario, you should add principal paydown as a benefit.
Take the 5% of your $175k and buy put options on XHB, homebuilder ETF. It should tank by December 06. When the next quarter's put options are available (Mar 07), use another 5%. It's risky, but I have faith the homebuilders will be crying by then. If you lose, you're out $17500, but if you win, you win huge.
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