HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
i'm fairly new to this game as well but lemme give u my opinion and you can take it for what its worth.
basically with openers, there are three things you can invest in.Â
1) the stock itself
2) the call
3) the put
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1) with the stock itself, its market price SHOULD reflect what investors (us) think it will do in the box office. You can calculate this by dividing its stock price by 2.7 (unless its some special weekend or something). For instance: Sorority row is trading at like $H28.02 Â that means, the exchange currently thinks that its market value (what it will open over the weekend Box Office) is $H10.3 million dollars. As one person said in another thread, this is the break even point for the stock. So, if you think that Sorority Row will do less than 10 million, you would want to short this stock. If you think it will do better, then you go long. Keep in mind, that these stocks are halted on friday at 10 am and cannot be traded till after scores are tallied over the box office weekend.Â
*** options work in a similar way***
2) A Call option says that, if a movie does better than its strike price (the number given in the options)then the profit will be the [movie's actual box office opening - strike price - price for the option). For instance - lets say Sorority Row's option is $H10. That means, you are betting that Sorority Row will pull in more than $10 million. Keep in mind, that you can always see what the community thinks of the stock by referring to its multiplier. (i.e. 10 x 2.7 = $H27, the stock is currently at $H28 reflecting stronger consumer belief, but that is all speculation as the numbers will change drastically as we get closer to the trade deadline.)
  So lets say, the cost for option is $H2. Lets say Sorority Row does 13 mil over the weekend. That means you earn 13 (box office) - 10 (strike price) - 2(call cost) = $H1.
3) Put option in essence works like a short. You are banking that the movie will not make its strike price. Thus, if we use Sorority row again and you dont think it will make the $H10 strike price, you would buy this option and profit off the difference between strike price and actual.
Keep in mind that with options, if you are fairly certain of where a movie will end up in relation to its strike price, you can still play BOTH options.
For instance, if I have decent proof that helps me in thinking that Sorority Row will do better than $H10 mil, than I obviously want to buy out its call option. However, I ALSO want to SHORT all of its put options.
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That information may be a little messy so if i've misinterpreted something please correct.
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I’m trying to learn how to play the new openers... Sep 10, 23:39
i'm fairly new to this game as well but lemme give u my opinion and you can take it for what its worth. Sep 11, 00:49
It took me almost two and a half years to make the first 20 of my 50 million so I can use all the help I can get. Sep 11, 03:33
if 4 day is like labor day, then the multiplier is 2.2 dont ask me why {nm} Sep 11, 04:43
Here's why the numbers vary. Sep 11, 06:32
If you really believe in your position, you can buy/short funds that reflect your openers, too {nm} Sep 11, 03:04
Thebest advice I was given is, "I dont know $hit" look at gutchecks and follow HSXtips on twitter follow trend analysis Sep 11, 14:48