Quotes on the CME Case Shiller home price index futures are mixed, and a hair lower, after this morning’s release of Case Shiller numbers. As illustrated in the table below, prices on the Nov ’19 (X19) BOS and LAX contracts are lower by one point, while the LAV and SFR … Read More
With the help of CME (thank you LA) I’m finally able to post electronic quotes across all ten regions for the Case Shiller home price index contracts. Now any trader that wants to buy (or sell) one-sided protection against a move in the Case Shiller home price index has a … Read More
How would you like to buy a product where: a) you participate if home price indices fall below current levels, and b) you’re guaranteed to get all your upfront money back if they don’t?
A number of factors have changed to (financially) allow the creation of a principal protected put … Read More
I included a page in the month-end recap with suggested two-sided levels for one-year puts on each of the 11 regional contracts.
The table details on the reference K19 (May 2019) contracts, a strike I selected, and then both suggested levels (in blue) as well as quotes that have been … Read More
With Seattle being one of the strongest home price markets in the country, some homeowners might be worried about a retreat in prices. Of course, they might prefer not to sell their homes, uproot their families, and move into a rental for both cost and logistical reasons, just to express … Read More
With all the concerns about home prices, I thought that it would be useful to start a (monthly?) effort to foster discussion on the price of buying down-side price protection on each of the 11 regions traded on the CME.
The table below shows suggested bids and offers on puts … Read More
The Wall Street Journal had an article Tuesday morning (see link) titled “Mortgage Break Faces Irrelevancy” which outlined possible impacts from proposed tax changes. The author (Laura Kusisto) quoted several sources each of whom suggested that, under the current proposal, fewer taxpayers would be able to take advantage … Read More
There’s have been 7 options trades this month (to go with 10 from August).
Here’s a table of my suggested offering labels. (Note table was updated for current spot values on Sept 21). Again, given the huge number of potential contracts (combining strikes, expirations, puts and calls) I’m only going … Read More
I posted a recap of activity in the CME Case Shiller home price futures contracts for June. You can access in the Reports section or via this link.
The 28-page report contains numerous tables and graphs of relevant information, including a section with graphs, prices and put option quotes … Read More