HSX Forum

Playing & Trading Strategy

It's generally a good idea to never short calls or puts, unless you are certain of the outcome (which is VERY rare). -more-

Posted by: arf on Jun 17, 10:06 in response to Ghinsberg's post Shorting option

You stand to lose far more than if you simply ignored the .PU or .CA for that stock rather than shorting it.  Shorting is the only way to lose as much money as the movie makes, if it takes off, so use it wisely. 

 

The payoff on the .PU and .CA aren't really worth shorting, as they only go to zero and not negative numbers (which shorting will put you into).  So you can usually only make 40k on something like AVENGR if you got in early $2.00).  Not worth the risks if it does flop.  You only need to get hit for a couple million once and shorting derivatives becomes a touchy subject.





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Disclosure Day (SKIES) 150000 117.76 (+0.80)          Supergirl (SUPGR) 150000 142.37 (+3.64)          Supergirl (SUPGR) 100000 142.37 (+3.64)          Toy Story 5 H$125 Put (TOYS5.PU) 25000 0.76 (+0.05)          Toy Story 5 H$125 Call (TOYS5.CA) 25000 8.18 (+0.49)          Toy Story 5 - Opening Weekend (TOYS5.OW) 100000 149.16 (+2.69)          Spider-Man: Brand New Day (SPID9) 17614 427.09 (+9.03)          John Turturro (JTURT) 25000 62.54 (-1.25)          Polly Pocket (POLYP) 150000 19.28 (+1.08)          Polly Pocket (POLYP) 150000 19.28 (+1.08)          The Death of Robin Hood - Openin (TDORH.OW) 100000 7.45 (-0.32)          The Death of Robin Hood H$10 Put (TDORH.PU) 25000 2.95 (+0.14)          Masters of the Universe (HEMAN) 100000 64.05 (+1.10)          Toy Story 5 - Opening Weekend (TOYS5.OW) 100000 149.16 (+2.69)          Toy Story 5 H$125 Call (TOYS5.CA) 25000 8.18 (+0.49)          Masters of the Universe (HEMAN) 1 64.05 (+1.10)          Masters of the Universe (HEMAN) 150000 64.05 (+1.10)          The Only Living Pickpocket in Ne (OLPNY) 150000 2.61 (+0.28)          Polly Pocket (POLYP) 150000 19.28 (+1.08)          Polly Pocket (POLYP) 150000 19.28 (+1.08)          Toy Story 5 - Opening Weekend (TOYS5.OW) 15556 149.16 (+2.69)          My Darling California (MDCAL) 149999 21.59 (-0.74)          Jackass: Best and Last (JCKA6) 150000 41.49 (+1.43)          Wilford Nappy Pulawa biopic (NAPPY) 145593 49.79 (+0.58)          Minions & Monsters H$75 Call (MNIO3.CA) 25000 3.10 (+1.10)          My Darling California (MDCAL) 150000 21.59 (-0.74)          Minions & Monsters H$75 Put (MNIO3.PU) 25000 1.57 (-0.43)          Scary Movie (SCAR6) 20000 106.06 (+1.01)          Moana (MOAN1) 150000 234.91 (-3.75)          The Uprising aka The Hood (THOOD) 100000 8.55 (+0.02)          Todd Phillips (TPHIL) 6999 149.36 (0.00)          Lily Sullivan (LSULL) 15999 26.63 (0.00)          Lily Sullivan (LSULL) 1999 26.63 (0.00)          Alex Pettyfer (APETT) 999 53.25 (0.00)          Alex Pettyfer (APETT) 993 53.25 (0.00)          Obsession $150M Blockbuster Warr (OBSSN.BW) 25000 13.31 (+1.06)          The Devil Wears Prada 2 $200M Bl (PRAD2.BW) 25000 14.38 (+0.63)          Stop! That! Train! (STTRN) 10000 5.18 (-0.02)          Joni Mitchell biopic (JONIM) 150000 12.49 (-0.06)          Fortitude (FRTUD) 5000 12.34 (+2.34)          Top Gun 3 (TOPG3) 40000 204.91 (-1.26)          Joni Mitchell biopic (JONIM) 150000 12.49 (-0.06)          Avengers: Doomsday (AVNG5) 150000 525.91 (+0.91)          Fortitude (FRTUD) 150000 12.34 (+2.34)          Heart of the Beast (HOTBS) 29000 42.06 (+0.26)          Jackass: Best and Last H$15 Call (JCKA6.CA) 25000 3.93 (-0.20)          Fortitude (FRTUD) 1 12.34 (+2.34)          Fortitude (FRTUD) 150000 12.34 (+2.34)