HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
The First Day of Trading. <MORE INSIDE>.
When it comes to CALLS & PUTS on High Value M/S, the Rule of 4.00 applies. If a Port BUYS both the CALLS & PUTS, that Port is GUARANTEED a PROFIT if the Actual OW ends up being more than 4.00 Higher or more than 4.00 Lower than the Strike Price.
Thus, if the Strike Price is, say, 160.00 & the Actual OW ends up Higher than 164.00 or Lower than 156.00, the Port is GUARANTEED a PROFIT. The Port would Break Even with an Actual OW of 156.00 or 164.00. The Port would incur a LOSS if the Actual OW were somewhere between 156.00 & 164.00.
Commissions (which are Minimal here) were not taken into consideration.
** This post has been removed by the forum moderator! ** Mar 17, 11:12
Why did you tag? {nm} Mar 17, 11:14
It's not unusually for both the Call and Put to go up on the second day of trading. {nm} Mar 17, 11:21
The First Day of Trading. <MORE INSIDE>. Mar 17, 11:36
Yesterday the IPO was first day. {nm} Mar 17, 11:38
The First Day of Trading with Price Movement. {nm} Mar 17, 11:40