HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
also, keep in mind that you can play these items both ways.
just because you think a movie won't make the break even point doesn't mean that you can only play its put option. In the case of these derivatives, lets say movie "A", you are certain it will gross more than its breakeven number. ok so logically, you will buy its call option. REmember though, you are still able to short things if you think they will do bad. IF you are certain it will do better than its estimate, than not only can you buy a lot of the call but you can also short a lot of shares of the put option. This way you can make money on both sets of options.
Let me rephrase as well, the number isn't a "breakeven", it is more or less a target goal that someone thinks the movie will hit based on number of theater releases and other outside influences. By no means does a movie go bankrupt if it doesn't hit that mark. Its just a target number. The game point of the option is whether or not you guess correctly on where the movie will lie in relation to this target after its first week.
trying to learn about calls and puts.....can anyone help me? {nm} Sep 30, 15:10
Well...ask away...are you just trying to understand how they work? The HSX Glossary is a help as well.. Sep 30, 18:11
here is something in "i dont know anything about finance or numbers just tell me if i long or short" terms Sep 30, 18:40
also, keep in mind that you can play these items both ways. Sep 30, 18:46
Shorting a Put option is a lil' bit risky... Oct 01, 04:48
well it should be obvious that if you pick wrong, you lose. Oct 01, 06:18
the real danger if you short a put at e.g. 10 and the box office goes massive {nm} Oct 01, 09:23
that actually answered all of my questions, thanks everyone {nm} Oct 01, 15:53
one last question Oct 01, 16:06
you mean if u buy max of whp put not call right? Oct 01, 18:54
yeah sorry Oct 01, 21:57