HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
An interesting thought/question about call/put
For the example, I'll use Avengers. 200M opening weekend.
With the IPO of both call and put at 2.00 each, if you invest call in both H$40k in call and put for a total investment of H$80k, then put delists (and you lose H$40k) and call cashes out at H$45.30 and you're looking at just under H$1M paid out.
I realize that this gap is well under for closer OW amounts relative to the derivitive, but wondering if anyone does, or has, done that and if so, how often?
An interesting thought/question about call/put May 07, 05:10
almost did it for avengers. IRL options traders call it a 'straddle'. Good for when a big move is coming. {nm} May 07, 06:01
I do both call and put on most every movie. $20k is cheap "at least I didn't get totally screwed" insurance. :) {nm} May 07, 09:15