IDWTH I was thinking when I didn't apply the following stunt to the Batman 3 options.
I max bought, went long, all the 'The Dark Knight Rises' (TDKR) $160m opening weekend calls possible, GAMBLING that TDKR will make $160 its opening weekend.
The Dark Knight Rises H$160 Call:
http://www.hsx.com/security/view/BATM3.CA
You can see this call has done well because... well... TDKR is one of a few mega-block busters being released this summer.
You can kinda judge the interest in TDKR by the 'long' interest showed in its underlying security BATM3:
http://www.hsx.com/security/view/BATM3
See that generally steady rise over the last year? That's a good thing.
Now, what I'm kicking myself in the head for NOT doing is shorting the BATM3 puts.
The Dark Knight Rises H$160 Put:
http://www.hsx.com/security/view/BATM3.PU
The same date that I went long (bought) BATM3.CA I
SHOULD HAVE sold short BATM3.PU and made some extra cash thattaways, but... like I said: IDKWTH I was thinking.
So, lettuce CONSIDER trying that with this week's two upcoming options IPO's
on Wednesday:
http://www.hsx.com/calendar/
Both options pairs will cost the same: two bucks x max trade of 20k = $40k x 1.01% trading comish = $40.4k,
EACH
Each max call buy.
Each max put short.
$80.8k for a max doubles play.
$161.6k for both max doubles play
The interest in The Watch since the security IPOed May 29, 2009 has been positive, but has leveled off and become quite choppy in the last four months.
Hmm... IDK what to think about that. Not exactly confidence inspiring.
The calls are betting the opening weekend will bag $25m:
http://www.hsx.com/security/view/NEIBW.CA
The puts are betting the opening weekend will
not hit $25m:
http://www.hsx.com/security/view/NEIBW.PU
Lettuce see how R rated Comedies have done this year for their opening weekends:
http://www.imdb.com/genre/comedy
- $54,415,205 - Ted - 3,239 theaters
- $39,127,170 - Magic Mike - 2,930 theaters
- $36,302,612 - 21 Jump Street - 3,121 theaters
- $21,514,080 - American Reunion - 3,192 theaters
- $2,019,083 - Friends with Kids
- $21,051,363 - Project X
- $6,526,650 - Wanderlust
- $17,405,930 - This Means War
Ben Stiller movies tend to rate at least 3,100 screens, and the ensemble cast would be on par with the three >$25m opening weekend revenue R rated comedies this year.
$25m (The minimum the options are betting 'The Watch' will bring in opening weekend).
/ 3,100 theaters
= $8,064 per theater
Looks doable.
Go long (buy) the $25 Calls and sell short the $25 puts may be a decent play.
I won't expect these to tear @ss like the TDKR options did, but they should do fair to well.
Next up - Step Up Revolution, STUP4.
Don't know jack about this genre, but I really like how interest in the underlying just keeps plugging along upward:
http://www.hsx.com/security/view/STUP4
'Step Up Revolution's options are betting opening weekend will bring in $10m.
http://boxofficemojo.com/movies/?page=similar&id=stepup4.htm
- $20,659,573 - Step Up - 2,467 theaters
- $18,908,826 - Step Up 2 the Streets - 2,470 theaters
- $7,138,266 - Katy Perry: Part of Me - 2,730 theaters
- $11,225,190 - Joyful Noise - 2,735 theaters
- $15,556,113 - Footloose (2011) - 3,549 theaters
- $5,961,231 - Glee The 3D Concert Movie - 2,040 theaters
- $29,514,054 - Justin Bieber: Never Say Never - 3,105 theaters
I think even with a notable drop off in revenue,
if STUP4 can get into 2,400 theaters this could
easily pull in $10m.
I feel better about this trade than about 'The Watch.'
Max buy STUP4.CA :
http://www.hsx.com/security/view/STUP4.CA
Max short STUP4.PU :
http://www.hsx.com/security/view/STUP4.PU
Also note that HSX has no stop loss orders, so you better be able to watch how these are going at least once a day.
If these start going against you it will chew up your HSX net worth PDQ.
I got burned holding onto Ice Age: Continental Drift H$65 Calls:
http://www.hsx.com/security/view/ICEA4.CA
Happy trading!
PS, Next week I'll report a similar post on the following week's big releases with likely options available:
http://www.hsx.com/security/feature.php?type=upcoming
Diary of a Wimpy Kid: Dog Days and
Total Recall, Aug 03, 2012
Good looking chart:
http://www.hsx.com/security/view/WIMP3
Looks tricky:
http://www.hsx.com/security/view/RECAL