Liongate’s 3:10 to Yuma, starring a gun slinging Russell Crowe and Christian Bale, will open in theaters this Friday to critical acclaim. But, ‘in the world’ where movie stars, the movie’s Oscar chances and money rarely share the same point of view, the politics of releasing and promoting films can get contentious.
Audio Podcast:
An audio podcast of this article is available at: poweropt.com/podcasts/2007_09_06_Movies.mp3
| Signup now for PowerOptions free 14-day trial |
Loose gossip surrounding Yuma’s release suggests Crowe and the movie’s lead financier held separate release parties for the film because they found each other’s perspective so repugnant. Crowe reportedly feels the film should have waited for a spring release when it would have conflicted less with his upcoming Universal movie, American Gangster. The Universal film pairs Crowe with Denzel Washington and is believed to have supporting actor Oscar potential for Crowe. Sources close to Crowe have also indicated he feels the poster for Yuma make him look fat.
| Signup now for PowerOptionsApplied 30-day risk free trial |
The financier of 3:10 to Yuma, Ryan Cavanaugh, reportedly does not want to wait until the spring to get his money back. Traditionally, movies have done worse when they are released during the back-to-school season. Spokesmen for Lionsgate have countered this argument by pointing out the critical and commercial success of Crash; a Lionsgate film few expected to win best picture.
An IMAX Version of the Transformers:
Another tidbit of current cinema news is the release of a digitally re-mastered version of the Transformers movie in the IMAX format. The movie was the highest grossing film of the year at around $310 million. The movie will hit IMAX theaters on September 21st.
Option Trading and Movies:
It is highly speculative to think the tidbit of news thus presented will positively affect a company’s stock price. However, if an investor were to make the decision to use a covered call investment strategy in the movie production sector, they would need to first research the available trades.
Because option data is often cumbersome and difficult to find, an investor requires the aid of a solid tool to help them sort through the noise. When venturing into the more exotic trades like, bull call debit spreads and the iron condor, this is doubly true. Below, is a demonstration of the types of search results our option search engine can provide.
Potential Trades:
The trades listed below were found by setting up a generic covered call search screening only for 3% downside protection and options expiring before the end of the year. Also, we specifically asked for covered calls in the Movie Production and Theaters sector. Below are the results.
| Covered Call Search – Movie Production | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Company Name |
Symbol | Stock Price |
OPTION | Strike Info |
Option Bid |
Net Debit |
% Dnsd. Prot. |
% If Unch. |
% If Asgnd |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| IMAX Corp. | IMAX | 4.77 (+0.21) | IMQLA | 07 DEC 5.0 (108) | $0.60 | 4.17 | 12.6 | 14.4 | 19.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lions Gate Entertainment Corp. | LGF | 9.31 (-0.09) | LGFLB | 07 DEC 10.0 (108) | $0.65 | 8.66 | 7 | 7.5 | 15.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Marvel Enterprises Inc. | MVL | 22.85 (-0.15) | MVLLE | 07 DEC 25.0 (108) | $0.85 | 22 | 3.7 | 3.9 | 13.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DreamWorks Animation SKG Inc. | DWA | 32.08 (+0.28) | DWALG | 07 DEC 35.0 (108) | $1.20 | 30.88 | 3.7 | 3.9 | 13.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Marvel Enterprises Inc. | MVL | 22.85 (-0.15) | MVLLX | 07 DEC 22.5 (108) | $1.95 | 20.9 | 8.5 | 7.7 | 7.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cinemark Holdings Inc. | CNK | 17.56 (-0.35) | CNKLW | 07 DEC 17.5 (108) | $1.10 | 16.46 | 6.3 | 6.3 | 6.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DreamWorks Animation SKG Inc. | DWA | 32.08 (+0.28) | DWALF | 07 DEC 30.0 (108) | $3.60 | 28.48 | 11.2 | 5.3 | 5.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Marvel Enterprises Inc. | MVL | 22.85 (-0.15) | MVLLD | 07 DEC 20.0 (108) | $3.70 | 19.15 | 16.2 | 4.4 | 4.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
All of the trades listed have 108 days until expiration. The trades offer between 4.4 and 19.9% potential profit and 3.7 to 16.2% downside protection.
Competitors:
Competitors for IMAX include: Regal Entertainment Group (RGC), and SimEx-Iwerks Inc. (private).
Competitors for LGF include: IFC Companies (private), and Miramax Film Corp. (private).
Competitors for MVL include: Mattel Inc. (MAT), Walt Disney Co. (DIS), DC Comics Inc. (private), and JAKKS Pacific (JAKK).
Competitors for DWA include: Blue Sky Studios, Inc. (private), Pixar Animation Studios Inc. (private), and Walt Disney Feature Animation (private).
Competitors for CNK include: Carmike Cinemas Inc. (CKEC), Regal Entertainment Group (RGC), and AMC Entertainment Inc. (private).
For more information about how to identify and research great option trades, visit the PowerOptions website. There you will find the data you need to make quick, clear, and informed decisions. You can trade knowing you have found the best investment. Also, PowerOptions will allow you, with a few quick clicks, to quickly and accurately compare trades. PowerOptions‘ premium customer support is second to none in the industry. They can be easily contacted when you need them at their toll-free number to answer customer questions. Call them now toll free at 877-992-7971.
PowerOptions provides a free 14-day trial of its service. So join PowerOptions today, and you too can start reaping the benefits of the covered call investment strategy.
PowerOptions‘ sister company PowerOptionsApplied provides expert stock option trading recommendations. PowerOptionsApplied specializes in covered calls, naked puts and iron condor stock options strategy recommendations. PowerOptionsApplied provides a 30-day risk free trial of its service.
[tags] SimEx-Iwerks Inc., IFC Companies, Miramax Film Corp., DC Comics Inc., Blue Sky Studios, Inc., Pixar Animation Studios Inc., Walt Disney Feature Animation, AMC Entertainment Inc., DIS, Disney (The Walt) Co., JAKK, JAKKS Pacific, MAT, Mattel Inc., RGC, Regal Ent. Grp., bull call debit spreads, covered call investment strategy, investment strategy, iron condor, poweroptions, stock option trading, stock options [/tags]