HOLLYWOOD STOCK EXCHANGE
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For new players, A quick primer on HSX Movie Derivatives.
Since I've seen questions from new players about them, a quick primer.
All HSX Movie Derivatives fall into one of two groups. The "Strike Price" group (*.CA, *.PU and *.BW) and the "Non-Strike Price" group (*.OW and I need a better name for the type in case HSX creates more). (This does not include the TV stocks or NominOptions. They are different beasts.)
The *.OW (Opening Weekend) type is simple. It operates like the regular movie stocks only instead of delisting at the reported Box Office after 4 or 12 weekends, it delists at the reported BO after 1 weekend.
The Strike Price types are different. They will have a strike price listed (usually in the name of the security) and will delist at a price equal to the difference between the reported BO and that strike price. For the *.CA (Call) and *.BW (Blockbuster Warrent) securities subtract the Strike Price from the reported BO after 1 weekend (for *.CA) or 12 weekends (*.BW) to see what they will delist at. If the BO is less than the strike price then they delist at $0.
For the *.PU (Put) securities subtract the reported BO after 1 weekend from the Strike Price. Buying Long on *.CA & *.BW is a bet that the movie will make MORE than the Strike Price. Buying Long on the *.PU is a bet that the movie will make LESS than the Strike Price.
For new players, A quick primer on HSX Movie Derivatives. May 08, 13:11
Excellent Primer. One little Point. May 08, 13:28
no. The OW delists at the opening weekend box office {nm} May 08, 18:11
OOPS, you're Right. Sorry, DTravel. {nm} May 08, 22:23
