HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
Strategy Question. Doesn't it make for a better profit to sell an adjusted stock instead of flipping/shorting it? Example >>
If I think a movie won't make it's adjust price, I sell it off after adjust. Here's why. A movie halts at $50 and adjusts to $130 (just random example with 100k shares) I sell it and make a profit of $80 a share and pay commission once. However, shorting it seems like the preferred option to many experienced players.
If I short it, I pay commission twice to flip it. Now I watch my shorted $130 adjusted price get eaten up over the next 4 weeks by daily/weekly box office sales and after 4 weeks the movie delists at $100. I end up making $30 a share profit. Correct me if I'm wrong, but am I not losing $50 per share less than if I had just sold it to begin with?
Of course I could always buy the stock again IF it exceeds the adjust price and make a continuous profit until it delists. Which someone would also have to do if they had shorted it along with the $0 profit from their shorting the stock. What am I missing and what is the benefit of shorting over selling? And thanks for reading all of this. I know it's similar to a question already asked, but it is different too. Any help would be very much appreciated.
Strategy Question. Doesn't it make for a better profit to sell an adjusted stock instead of flipping/shorting it? Example >> Feb 16, 16:57
You're missing a step. Feb 16, 17:14
your thingy is wrong... Feb 16, 17:16
My thingy WAS wrong but I've adjusted it. Feels better now. Thanks to you all for the explanations. {nm} Feb 16, 17:38
You are Wrong - You are Mixing up Cash Flow & Profits. <INSIDE>. Feb 16, 17:29
Thanks for the math lessons. Math was never my favorite subject. {nm} Feb 16, 17:44