HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
I'm still not sure I fully understand the shorting of calls and puts.
Let's say a movie's strike is $30, and the price of the calls and puts are $2 when you buy them. If you short the call and the movie bombs and only makes $12 in its opening weekend, does that mean that you would get $18 a share (or $16 or whatever when you factor in the price you paid?) I know if the movie's strike is $30 and you long the put, you'd get $16 a share if it only made $12, but I was under the impression that if you shorted a call on a movie with a strike of $30 at a price of $2, you were betting ONLY on the movie making between $30.00 and $31.99, and that you'd lose the investment if it made under $30 and that you'd lose money if it made over $32.
Probably a dumb questions, but, does "shorting" a "put" work the same as buying a "call", "long"? {nm} Sep 08, 18:03
Shorting a put means that you think that it will have a greater box office than the strike. So....... Sep 08, 18:08
Thx. thats what I thought... I just wanted to ensure that was correct. {nm} Sep 08, 18:12
I'm still not sure I fully understand the shorting of calls and puts. Sep 09, 11:14
If you short a call at $2 the max you will get is add'l $2. If the movie doesn't make call price then it delists at 0. {nm} Sep 09, 18:21