HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
Puts cash out the Monday after the opening weekend of the relevant movie, sometime after 4pm Pacific time.
The cash out value depends on actual boxoffice. If box office is higher than the strike price, the put cashes out at zero. If the box office is lower than the strike price, the put cashes out at (strike price - weekend box office in millions)
Puts halt on the day of release. You can check out the calendar to see which puts are halting and cashing out this week and next.
From the glossary:
PUT
A put is a form of option that speculates a related movie will have a lower box-office take for its opening weekend than the strike price. A H$15 put for Jillian in June has a strike price of H$15, and will cash out at zero if the movie takes in more than $15 million during opening weekend. See: Option.
http://www.hsx.com/help/?page=glossary
About Derivatives: what happens if i keep a security short by the time the stocks have halted? how they cash out? (cont) Jul 25, 10:14
Puts cash out the Monday after the opening weekend of the relevant movie, sometime after 4pm Pacific time. Jul 25, 11:03
Thanks, but i know that. What i don't know is when you have a put on short, what happens? (cont) Jul 25, 11:34
Thanks for your time, excellent explanation. Very clear, that's what i needed to know :) {nm} Jul 25, 12:07
Why short a put? Jul 26, 17:51
If you think it will cash out at zero. {nm} Jul 26, 22:35
Thanks, still new here (nm) Jul 27, 09:07
It is as Ndmaster says, but also, you can play with the market flow.(cont) Jul 27, 09:40
