HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
You are betting that the security will not make the strike price. If it does not, that is delists at zero, you win and
you are credited for twice your investment. (Your original investment plus the cost price less zero)
If it MAKES the strike price, by more than the amount of your original cost, you lose the difference between the cost price (ie 2.00) and the delist amount (Actual-strike) per share.
Note: Shorting puts and calls takes a little guts. If the movie breaks far from the strike price and you are pointing in the wrong direction, there is no limit to your loss.
If you short at IPO (2.00) and the strike is 40 and the movie makes 70 you lose 30 per share, plus your cost. If it does not make strke, and the .CA delists at zero, you make 2.00
Of course, these ARE fake dollars.
I shorted a call. What happens when it cashes out? {nm} Nov 01, 07:09
Depends on what it cashes out at. You will receive the value of the option at the time it cashes out (or you sell it) Nov 01, 07:36
"Sell" = "Cover" {nm} Nov 01, 07:36
You are betting that the security will not make the strike price. If it does not, that is delists at zero, you win and Nov 01, 07:47
