HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
Here is some basic guidance
Buy both call and put for higher strikes ($40 and up), and short all calls and puts with $5 strike. The variance, or possibility of wither the high strike put or call making a bunch of money is much higher than with the lower strike. i.e. with a $50 strike, if it makes $55 opening weekend (10% higher than strike) the call will be worth $5 and the put $0. A movie with a $5 strike, making 10% over strike will only net $5.5 with the call worth .5 and the put a 0.
Of course, if things change while you own them, trade them.
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
