new derivatives business, covered calls on homes?

Discussion in 'Economics' started by KINGOFSHORTS, Jan 12, 2009.

  1. Why not let homeowners write covered calls on their homes giving banks,investors etc... the right to buy their home at the strike price they pick.


    Homeowners could use the premiums to pay the mortgages,bills etc..

    investors could speculate by trading the calls on the CBOE home futures market.

    Banks could hedge etc..

    everyone wins.