HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
Well...as you know...a Call is betting that a movie will earn MORE than the strike price...a Put is just the opposite...
So you are betting against yourself. One or the other of these will cash out at zero - either the Call will cash out at zero if the movie earns LESS than the strike price, or the Put will cash out at zero if it earns MORE than the strike price.
So the loss on one, would cancel out the gain on the other...
If the movie earns MORE than the strike price, your CALL will earn you money, and your PUT will lose you money.
If the movie earns LESS than the strike price, your PUT will earn you money, and your CALL will lose you money.
How much you win or lose by holding each, depends on what price you paid for both of them at the time you bought those options....
what good does it do to hold 10,000 of both a call and put? {nm} Dec 13, 12:26
Well...as you know...a Call is betting that a movie will earn MORE than the strike price...a Put is just the opposite... Dec 13, 12:54
That is true... Dec 13, 15:51
Here is my .02 I will use a fictional MOVIE with a strike of 20 which means Dec 15, 09:16
NB....in the last sentence replace "delists" with "Opens" (Terminology !) {nm} Dec 15, 09:45
sorry, but your analysis is slightly wrong Dec 15, 10:17
prebious = previous {nm} Dec 15, 10:17
