HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
not really:
shorting a put will make you money (limited to $H you collected when you shorted it) if moviestock adjusts above the strike price. if the movie bombs your losses can be huge.
for example you shorted a put @ H$ 2 with a strike price of $30. you collected H$ 40k ($H2 x 20,000).
the movie hits 35 opening wknd, you get to keep $H 40k. now if the movie bombs and makes $15 mill opening wknd, you are on the hook for the difference $30 strike price - $15 opening wknd + $2 you collected = loss of $13 x 20,000 = $260k.
longing a call will make you money all the way up to the point of actual box office. your losses are limited to what you paid for the call.
Is shorting a put the same as longing a call?-nm Jun 30, 22:08
not really: Jul 01, 07:11
