HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
Some examples inside
Calls and Puts start at HSX $2.00
If the strike price is 10, then you will make money if on the call if the actual box office (not estimates) is over 12 (12 million).
if you bought the put long you will lose money as it will cash out at 0 (box office >10)
if box office = 11, then call will be 1 (10 + 1), put = 0.
So if you bought call long then you would lose 1
if you shorted the call then @ 2 then you would make 1.
The maximum you can make on a short of a call or put is the price you bought it at.
But you can lose an unknown amount if you short a call and the movie makes alot of money.
If strike price 10, you short the call @ 2, and the actual box office is 15 then you would lose 3 (15 - (10+2)). if the movie makes 20, then you lose 8.
So, shorting a call or put has a maximum profit you can make and a unlimited loss. If depends on the movies, last weekend shorting the call was an easy choice, especially with low priced movies. This weekend not so obvious a choice
How does shorting a call option work? Nov 05, 09:50
If Actual doesn't reach the Strike price, Calls will delist at 0 and Puts will delist at the difference. Nov 05, 12:01
So shorting a Call will only result in a profit if other people feel it's overvalued and short it as well? Nov 05, 15:06
Sort of Nov 05, 15:48
Some examples inside Nov 05, 16:24
as continuation to JDolphin's post. {nm} Nov 05, 18:35
So take a minimum of a Call costing $2.00 per share with a call of 10 Nov 05, 23:07
It will delist at 0 . Anything less than the strike price then the call delists at 0. {nm} Nov 05, 23:40
Here is some basic guidance Nov 06, 09:12
