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Playing & Trading Strategy

Short Call/Short Put Questions:

Posted by: thepizzaguy (a.k.a wroberson) on Aug 23, 01:01

I purchased Vampires Suck (put), short.  The movie made the call and my short will delist at .01.  Does that mean I will gain H since I bought at 1.35 and the put will delist for a penny?  The put was 10 mil and the movie made 12.

Also,  I put shorted Nanny McPhee and it failed to make the call.  A put will increase in value.  A shorted put will increase in value?  This was a 10 mill trade short and the movie made 8.

Can anyone make sense of this?  I'll never figure out what happened when they update the calls and puts.

I'm thinking that if you purchase a call and the movie exceeds the call price, the call will earn the difference between the call price and box office.  And trading into a put when the movie fails to reach the call amount, the return will be the different between the put target and the box office.

How ever, I don't know what happens when you short a put and the movie earns more then the put target and what happens when you short a call and the movie fails to meet the call target amount.

 

I'm just as lost as you.  Someone may be around to make sense of it.  Was just looking to earn H both ways call and put for the same movie.





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