Playing & Trading Strategy

Several profitable perspectives can inform the new HSX trader.  Playing the popcorn, for example – trading based on how opening box office influences the price of a MovieStock, StarBond, or derivative upon retirement – is an obvious one.  Playing the players – trading based on expectations of how other traders’ conduct will influence price, perhaps without much relation to price-relevant facts – can generate oft-overlooked profit in certain circumstances.

For the player with a portfolio below roughly H$5 billion, playing the percentages – the daily percentage return on an investment after trading cost -- is an essential strategy.

 Spider-Man continues to climb today, up another H$8 or so (past H$620).  The brothers of Delta Tau Chi respect that appreciation – our profit from holding Spider-Man currently exceeds H$52 million. But for a fledgling trader, purchasing Spider-Man today would have been a poor judgment.  SPID8 has gained $8, and was a reliable climber . . . informed observers expect a delisting approximating H$660 in a week or so.  SPID8 already has roughly H$600 in revenue (learned by pointing a Google-compatible device at boxofficemojo.com) and continues to earn eight-figure revenues daily.  How could you lose?

By devoting resources that could perform far better elsewhere.

A trader with H$5 million to invest could purchase roughly 8,000 shares of SPID8 and reasonably expect to earn a daily profit approximating H$40,000 each day until SPID8 delists. Recalling transaction cost – the H$50,000 in commission associated with investing H$5 million in SPID8 – cuts that profit substantially, however.  Even more painful would be observing better-performing investments stomp SPID8 during the coming week.

Resurrection (RSREC), a wrapped movie made available for purchase at HSX on December 20, for example, has dropped roughly H$.50 today, and has fallen roughly H$.80 since the initial public offering (IPO) a few days ago.  Shorting RSREC (a reliable but not foolproof strategy with respect to low-priced IPOs) has generated a profit of 15 percent today and 20 percent since the IPO.  A H$561,000 investment in RSREC this morning would currently sport a daily profit approximating H$80,000 – twice as much as a SPID8 investment, with more than 90 percent of that H$5 million portfolio still available to pursue other opportunities.  (And, at those profit levels, the 1% commission can approach a rounding error.)

Early in the trading day, it is worthwhile to check sources that can identify strong daily movers at HSX, such as

(1) HSX’s Today’s Top Price Movers, reached by selecting Now Trading at the green banner, then Movie Stocks

(2) HSX’s movies message board (Community, Forums, Movies), which regularly provides breaking news destined to reach the traders who will influence prices

(3) HSX’s announcements board (Community, Forums, Announcements), which occasionally provides release dates, studio acquisitions of movies, and actor attachments

(To avoid reliance on a daily advance that might have reversed, consult the invaluable daily trend generator offered by the invaluable HSXer KaiGee:      https://www.kaigee.com/Chart/1D/[tickersymbol]  Example:  https://www.kaigee.com/Chart/1D/PINK2 )

Another investment class that regularly offer strong daily returns is a bond* about to adjust based on box office.  Visit Kaigee.com -- select StarBonds, then Adjusts, then Next, and sift by Adjust Date, focusing on the dROI (daily return on investment) column – for pointers toward candidate bonds.  

(*At HSX, the description of bonds can be confusing.  HSX uses two terms, StarBonds and CelebStocks, to describe securities associated with particular actors and directors.  HSX’s Now Trading feature has a StarBonds option and a CelebStocks option (StarBonds is the one you customarily want, providing daily movements, while CelebStocks generates an alphabetical list of all bonds).   HSX’s View Portfolio feature (My Portfolio, then View Portfolio) refers solely to StarBonds.  At HSX’s Forums, however, the relevant message board is “CelebStock and StarBonds.”   CelebStock seems an obsolete term; we gather HSX keeps it around for legal reasons (trademark?), and you should trust us on that, because we’re pre-law.)

Derivatives – NominOptions, AwardOptions, Puts and Calls for openers, Blockbuster Warrants (especially as they approach delisting) – also can provide formidable, quick profits that should be especially attractive to new traders.  Find them at Now Trading, All Derivatives and at News and Events, Market Calendar.

For today, until the Delta Pledge Class next convenes, our only other advice is to start drinking heavily.   https://www.youtube.com/watch?v=LARx7M9s15w

Good luck, traders!

Respectfully submitted,

This second day January 2022,

Sen. John Blutarsky, Sergeant-At-Arms, Delta Tau Chi