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Shorting a Put option is a lil' bit risky...
You must be pretty darn sure about your opening weekend estimate.
For example, let's say film X has a $10 Put and Call option, and you think it's going to make $20 in 3 days. If you were to buy the call and short the put:
10000 x $2 x .01 (comission) x 2 = $40400
Now let's say it opens at 5
The call cashes out at $0, and the put at $5... except that's effectively -$5 for you, plus the $2.00 per share you paid. This is, IMHO, the best way to achieve "negative cash". I really hope my math here is almost right, but shorting a put is something I always think twice about...
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
