I’ve posted quotes at the CME for puts on the ten regional Case Shiller home price contracts (and the 10-city index) that expire in Feb 2020. Recall that these options will settle on the value of the Case Shiller index released that month, and that that index references data through … Read More
I’ve updated two-sided CME quotes for puts on 11 regions, for Nov 2019 expiration (x19 contract), at strikes near spot levels. The table is shown below and is in the Options tab.
There’s been no volume and near no open interest, so this is as much price discovery as it … Read More
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