Been following the housing futures’ pregnancy since last year. I was happy finally the child was born … but there just isn’t enough volume for trading … hopefully one day interest will increase. In the mean time I was looking at shorting builders but when I looked at it back in March I thought the sector has already gotten too cheap (the big names already have PEs in the single and sometimes low single digits) but then of course the cheap got cheaper ha ha ha.
But then if may07 SD contract is currently priced at -3% from current index level may be it’s not all that bad to do a buy and hold. I prefer options for this type of strategy coz I can just go away and not have to worry about margin call etc but I imagine the premium and spread would be quite high given the illiqudity. I go to check the options page from time to time but it’s always blank does anyone know why ? Are CME housing options just not yet launched or am I looking at the wrong places ?