HSX Forum

Playing & Trading Strategy

It's all about balance

Posted by: srrichardson on Dec 15, 05:26 in response to HSXiphos' post Confused by NominOptions. More nominations equate to a...

The way nominoptions are priced at IPO and cashout is all about ensuring that if you bought equal quantites long of all the nominoptions in a category and held them until cashout, you would not make a loss or profit (excluding commision)

All the calculations of the total cashout for all the winners for best picture (10 * 9, 9 * 10, 8 * 11.25, etc.) come to 90 so at 5 a share at IPO we can assume there will be 18 best picture nominoptions (90/5).

If you bought 1 share of each at IPO it would cost you 90 (plus commission), if you then held them until cashout, you would receive 90 regardless of how many nominees there were.

This way HSX doesn't give away free money and encourages us to try and accurately predict the nominees.





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