HSX Forum

Playing & Trading Strategy

My mind got into a math orobouros: shorting a call

Posted by: Wilderness_Journey on Aug 04, 07:53

For some people this is probably an easy math question, but I cannot figure out how to...figure on this one. If you short max on a movie call, what happens at payout? For instance, a movie had high expectations and was listed HYPOTHETICALLY at a $30 call. So the stock opens at $2/share. You don't believe the movie will make it to that hallowed $30 million opening weeking take. You short max the 20,000 shares and many agree with your stance and also short the derivative. Let's say that by the end of the weekend the box office take is $20 million (for math's sake). Do you only receive credit during the shorting timeframe and then cashout at $0? Or do you make the inverse ($10/share) back because you shorted it? (Actual Box Office - Strike Price) 

It's probably an easy answer, but I've overthought it and now am totally confused.

My mind got into a math orobouros: shorting a call Wilderness_Journey Aug 04, 07:53

answer... RazorHawk Aug 04, 10:09

Keeper {nm} Grunt Nov 09, 13:21

Spulling mistake {nm} Grunt Nov 09, 13:23





Post a Reply

To post to the forums you must first login!


Buy Max    Sell All    Short Max    Cover All    Radar

Top Gun 3 (TOPG3) 62 225.25 (-1.76)          The Bad Guys 2 (TBAD2) 150000 86.59 (+0.16)          Mamma Mia 3 (MAMI3) 50000 18.44 (-0.08)          The Dish aka Untitled Event Film (SKIES) 999 118.84 (-0.22)          A Winter's Journey (AWNTJ) 149996 3.74 (-0.26)          Mufasa: The Lion King (LION2) 150000 279.15 (-10.60)          Flight Risk (FLTRS) 149996 28.93 (+0.77)          Uma Thurman (UTHUR) 5000 7.64 (+0.01)          Verona's Romeo and Juliet (VERAJ) 150000 14.43 (-0.16)          Verona's Romeo and Juliet (VERAJ) 150000 14.43 (-0.16)          Oprah Winfrey (OWINF) 5000 58.00 (+0.14)          Nutcrackers (NTCRS) 150000 1.38 (-0.24)          The Beatles (BEAT1) 5000 77.22 (-3.98)          Kraven the Hunter H$30 Call (KRAVN.CA) 25000 2.27 (+0.27)          Jurassic World Rebirth (JURA7) 10000 292.98 (-5.97)          The Lord of the Rings: The Hunt (LOTR5) 50000 166.03 (-2.13)          Mufasa: The Lion King (LION2) 15000 279.15 (-10.60)          Timothee Chalamet (TCHAL) 9 107.39 (-0.33)          Ansel Elgort (AELGO) 20000 83.03 (+0.45)          Andy Warhol biopic (WARHL) 10000 0.01 (-0.01)          Ansel Elgort (AELGO) 25000 83.03 (+0.45)          The Lord of the Rings: The Hunt (LOTR5) 50000 166.03 (-2.13)          Castro's Daughter aka Alina of C (CASDT) 10000 0.01 (-0.01)          The Batman: Part II (TBAT2) 15000 262.56 (-9.63)          Jaeden Martell (JALIE) 25000 103.88 (-0.71)          Avengers: Doomsday (AVNG5) 50000 453.98 (+1.50)          Lake George (LAKEG) 150000 0.17 (-0.01)          Jaeden Martell (JALIE) 25000 103.88 (-0.71)          Spellbound (SPLBN) 110000 0.15 (+0.03)          Chris Sanders (CSAND) 20815 152.64 (+0.91)          Evil Dead Untitled (EVLD6) 150000 28.87 (+1.61)          Evil Dead Untitled (EVLD6) 150000 28.87 (+1.61)          Charlie Plummer (CHPLU) 25000 8.71 (-0.05)          Djimon Hounsou (DHOUN) 25000 61.35 (-1.25)          Red One (REDON) 9000 80.72 (-3.20)          Fred Hechinger (FHECH) 25000 23.17 (+0.75)          Mufasa: The Lion King (LION2) 1000 279.15 (-10.60)          Aaron Pierre (APIER) 25000 100.75 (+0.33)          Cate Blanchett (CBLAN) 25000 32.64 (-1.12)          Anika Noni Rose (ANROS) 25000 83.49 (+0.50)          Bethlehem (BTLHM) 150000 30.00 (0.00)          Billy Eichner (BEICH) 25000 145.65 (+0.01)          Untitled Lee Cronin Project (ULCRO) 10000 36.87 (-0.04)          Maggie Q (MQUIG) 25000 64.02 (-1.25)          Maggie Q (MQUIG) 25000 64.02 (-1.25)          Mads Mikkelsen (MMIKK) 25000 79.47 (+0.25)          Mufasa: The Lion King (LION2) 150000 279.15 (-10.60)          Thandiwe Newton (TNEWT) 25000 71.04 (-0.25)          Mufasa: The Lion King (LION2) 150000 279.15 (-10.60)          Cate Blanchett (CBLAN) 25000 32.64 (-1.12)