I think I remember running into this once. I had the options when I had a Home and Trash folder, but then I deleted them, and was presented with a different right-click menu.
When you say just menu options, do you mean just like the menu you see when you click the launcher on the panel? Or something else?
I would go ahead and create a Desktop directory in /home, then you just need generic .desktop files, I think they all follow the same freedesktop.org standards.