HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
so more inside
so after a film adjusts, traders will play that stock based on what the film will do over its 4 week period. so basically, the question is, will it make how much it adjusted to? some will, some wont. for example, saw6 only did about 1.9 times its OW, family films tend to do better, like cloudy meatballs did like 3.1.
whatever the box office total is after its 4th weekend, is what the film will cash out at. until then, the stock doesnt have any more adjusts, but the price will change, sometimes erratically, depending on what traders do, which generally they will move it in the direction of how well its doing at the box office. playing a stock in that period after adjust, but before delist can be tough, but also lucrative. if you can keep a close eye on it, I'd play it like this: if in the morning, its going up, jump in long, ride it up a few bucks, then, because what goes up must come down, get out before the price sinks. but keep an eye on commission, you have to pay 1% to buy and to sell, so if the stock doenst climb enough to cover commission, youd be losing $. inverse is true also, if stock is moving down, go short and ride it down to make money, and get out when you made enough. this is called daytrading, its risky but profitable if you do it right. like i said, generally traders will move the stock based on box office, but they can be unpredictable too, especially if someone posts good or bad news about the film on the movies board.
as for a limited film like boondock, if it opens and never goes wide (meaning in more than 650 theaters) it never adjusts. traders will play the stock based on what it will do over 12 weeks ( the time period given to limited films). stock will cash out at whatever the box office is after its 12th weekend.
Now if boondock gets a wide release, things change. it then gets treated like a wide release as i described at the start with a little change. the adjust for such a case would happen after its first wide release weekend using this formula: (weekend box office times 3.0) + previous box office. notice the different formula compared to a wide film. the film would then change to a 4 week period, cashing out after the 4th weekend. this is regardless of how many weeks in had been in limited release.
i know thats alot to read, hopefully some of it made sense!
moviestock adjust post OW question Nov 18, 17:19
ok , that helps, but i have more.... Nov 18, 18:21
so more inside Nov 18, 18:58
that helped a ton... Nov 18, 19:17
some advice for newbs :) Nov 19, 06:42