HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
The risk is the potential loss. On your example - with a strike of $30 - if the movie is an unexpected success and makes $40 you
lose $8/share.
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
The risk is the potential loss. On your example - with a strike of $30 - if the movie is an unexpected success and makes $40 you Sep 09, 22:40
