HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
Reading the post makes me dizzy.....Let me TRY to simplify....
The movie will gross an amount, lets call it G. Unless DMac is clairvoyant and hits a home run, G will not equal the Strike. It will either be greater than or less than the strike.
This means that either the put, or the call will delist at zero. Always. (Once in a while they both delist at about zero. If you short the right one, the one that delists at zero, you gain (win) the amount that you shorted at. So if you short at 2, it delists at zero, you gain 2. (Plus your initial investment.) If you short at amount other than 2, you gain the amount that you shorted at. It is similar to shorting a movie at 3.4 and it goes STV and you gain 3.4
If you short a put or call and it delists at an amout greater than zero, but less than what you paid, you gain the difference between the amount paid and the delist amount. MCP2PU delisted at 1.59 If you had shorted it at 2, you gained .41 per share. If you shorted at 1.30 you would have lost .29
If you had longed it at 2, you lose .41.
Generally, the puts/calls should be purchased in pairs. If you believe that the Put is a winning investment, long it and short the call. If you think that the Call is a good investment, long it and short the Put. The trick is to get a feel for the way these work.
Short Call/Short Put Questions: Aug 23, 01:01
When a shorted PUT/CALL is H$2.0 und delists at H$0.01 you make profit. Aug 23, 02:25
Reading the post makes me dizzy.....Let me TRY to simplify.... Aug 23, 19:44
Thanks for the info. Sorry for the dizzying post. It looks like I gained on the call/put situation. K+ {nm} Aug 23, 22:27
Pretty much tossing darts here... {nm} Aug 23, 22:28
There is a little technique to it.... Aug 24, 07:24
Correction ...2nd example was a strike of 15 {nm} Aug 24, 07:25
I figure the "break even" point is making enough money to cover the ulcer meds. :-D {nm} Aug 24, 12:40
What happens with movies who delist at H$0 because they weren't released in theaters? Aug 31, 06:50
Yes {nm} Sep 01, 10:45
