CME reaction to post Tues Sept 25 CS#’s

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 contracts are higher.  The HCI (10-city contract) is lower by 0.5 reflecting slight declines across the ten regions.  Bid/ask spreads are almost back to pre-CS#’s.

While there have been no trades yet today, (with the turn in HPA) I continue to receive inquires from people looking to buy puts.  (Most inquires are for 1-2 years for slightly out-of-the money strikes).   In my Sept 21 blog I highlighted that options are now easier (for me) to trade across all ten regional contracts.  I have a limited budget for put writing, so anyone looking to sell puts should have some pricing power.

Please feel free to contact me (johnhdolan@homepricefutures.com) if you have any questions on this blog, or any other aspect of hedging home price indices.

Thanks,  John

 

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