Here's a page of news related to those looking for "values" on options. I'm going to populate this page with tables from blogs related to options for one-stop shopping on option prices. Click links to open
Jan 29: updated indications prior to month-end. Slight increase in vol, given stock market moves.
Dec 2: I've updated quotes on puts and calls. I've also lowered my volatility assumptions, and that has had the impact of reducing put premiums to <30% of maximum payout
Nov 25: I've updated strikes for options on cities in the CS 10-city index. Note that strikes have moved higher by 5-10 points, given the rally in the futures. Also, note that I've added a column that tallies the "Premium vs Maximum Payout". This might help users in a risk/reward analysis. I will post options on "other ten" cites (the ones that make up the balance of the CS 20-city index) over the weekend.
Nov 13: I'll be posting a blog over the weekend to promote/ introduce Calls. My thinking is that volume in futures has been so low as bullish sentiment dominates, yet people don't want to "pay up" for forward prices. The table I'm using is shown below.
Oct 19, 2020: Added levels for puts on cities that are the "other ten" of the Case Shiller 20-city index.
Oct 14, 2020: The CME closed trading of listed options on Jan 27, 2020.
After getting feedback over the past few months, I've posted below, offered side indications on where I'd write OTC versions of options on the CME futures. As with futures, I'm going to focus on the G22 expirations. The slightly greater than one-year term seems to fit many hedging inquiries.
I'm open to other terms, strikes, degrees of in-/out-of the money puts (and calls) but see one-year, near at-the-money puts as the building block for all others, and would like to focus inquiries on fewer agreements to start.
The major difference (other than OTC trading -so not traded on the CME) is that puts have a range of coverage, not unlimited downside protection. For example, floors on the G22 options are set at approximately 90% of strike. As such, put buyers can think in terms of "how much would I have to pay upfront for 10% downside (from the strike).
Option agreements would be written on the HPHF platform so counter-parties would need to fund the full exposure up-front. For put/call buyers, that would be the premium. "Put writers" would structured as deep out-of-the money, capped calls. For example, the put writer on the HCI option would be buying a call on HCI with a 210 strike and a 235 cap, and would need to pay that option premium upfront.
Please feel free to send me your ideas on what you'd like to see in an OTC options market on home price indices. As before (when CME had contracts) finding users willing to "write puts" will be key.