Most of the limited trading over the last few weeks seems to have revolved around Aug/Nov ’13 calendar spreads (Q13/X13). Trades involving the X13 leg have occurred in BOS, DEN, SDG, SFR, and WDC contracts. It seems consistent to me that recent questions about the staying power of the rally in home prices should show up in calendar spreads. With the August release of the Case Shiller #’s about two weeks away, August bid/ask spreads have tightened to average 1.5 points. (All are <= 2.0 points).
The combination of tight Aug spreads, and two-sided activity in Aug/Nov calendar spreads will help tighten November markets. Any help/thoughts/counters to the recent Q13/X13 spread markets (shown at the left) would be much appreciated.
If you have any questions, or care to discuss these spreads- or any longer ones – in more detail, feel free to contact me (firstname.lastname@example.org)