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Playing & Trading Strategy

here is something in "i dont know anything about finance or numbers just tell me if i long or short" terms

Posted by: kensanity on Sep 30, 18:40 in response to Flash's post Well...ask away...are you just trying to understand how...

CAll and puts always have the same breakeven number. For instance, Couples retreat has a breakeven number of $H30. 

If you think the movie is going to make 30 million, you want to invest in buying the call. If you do, you will make [box office-30]-cost of call.

If you think the movie won't hit the 30 million mark, you want to invest in buying the put. If you do you will make [30-box office]-cost of put.

 





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