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Simple answer is yes...full reason inside

Posted by: mrbinns A DECADE AT HSX (a.k.a mrbinns) on Oct 26, 06:17 in response to kruger's post thanks guys (more in the post)

Suppose MOVIE has a strike price of 10. The call is a winner if the total box is over 10. The Put wins if the Total box is less than 10. (Actually, since the initial cost is 2, you are reallly thinking 12 and 8 respectively, but lets not go there.)

This is an opinion poll. So you are going with your opinon. Suppose that you think that MOVIE will do 15, easily. Then you buy (long) the Call. Since 15 is more than 10, then the Put will delist at zero, so a short of the Put will gain. So Long Call, short Put.

On the other hand, suppose you think that it will go the other way. Say about 7. Then you would buy (long) the PUT since you think the total box office will be less than the strike of 7. But in that case, the CALL will not be greater than the strike (7 is less than 10) so you would Short the CALL.

Once in a great while, actual is near the strike price (A HOLE IN ONE!) and BOTH delist at zero, and shorting both would be the correct answer.

Just remember that this is a game. A large opinion poll disguised as a game. You are playing with fake money. So have fun. If you guess wrong, well at least you still have your rent money.

What's the difference between selling and short selling ? (i read the help section :s) kruger Oct 25, 12:10

answer... RazorHawk Oct 25, 13:27

Thanks but still lost ! kruger Oct 25, 16:58

addition on last reply kruger Oct 25, 17:02

Here's some additional thoughts on Shorting.... Flash Oct 25, 17:26

adding more... lapuckfan Oct 25, 17:53

Also, the terminology might be confusing you... Chefbobcat Oct 25, 19:46

Thanks but then what's the difference with "call" and "put" derivatives kruger Oct 25, 21:43

My previous post contains more than just the title (sorry can't edit) {nm} kruger Oct 25, 21:44

Let me try to use simple terminology...if possible. mrbinns A DECADE AT HSX Oct 25, 22:28

Calls and Puts are Derivatives. They are based on opening weekend grosses... Chefbobcat Oct 25, 22:35

thanks guys (more in the post) kruger Oct 25, 23:28