Monday, February 17, 2020

Finn Wolfhard - FWOLF (Short) - HSX Pick of the Day for February 17, 2020

Finn Wolfhard is best known for his work on "Stranger Things," but his movie dance card has been jam-packed, appearing in three films in 2019, with two in 2020 and one in 2021. Volume is the most valuable asset for a StarBond on the Hollywood Stock Exchange, so it's always worth watching a stock like this. Sure enough, FWOLF offers big opportunity, both in the short term as well as the medium and long terms.

On Wednesday, February 19th, FWOLF will adjust to reflect the box office from The Turning, knocking the horror smash It out of TAG range. It earned more than $327 million, so it falling out of TAG range for FWOLF would drop his stock $50 per share. The Turning has currently grossed $15,141,565. If you build in some padding and place it at $16,000,000, that's $3.20 per share increase, meaning FWOLF will land $46.80 per share lower than it's current TAG of $114,144,985. This means FWOLF will adjust to roughly $67.32 on Wednesday, meaning that if you short the stock, you will earn $17.70 per share guaranteed, a profit of 20.8%.

Beyond the immediate windfall, FWOLF offers some area for profit that, while not guaranteed, is highly likely and worthy of your investment. FWOLF's next film to fall out of TAG range is Dog Days, which grossed $6,807,030, and will be replaced by the new Ghostbusters movie in July. It's inconceivable to imagine it won't gross north of $6,807,030, and at the current price of $147.47, it will likely gross far, far more.

Recommendation: Immediately short as many shares of FWOLF as you can afford, and then quickly cover the short on Wednesday once the stock adjusts. After adjust, buy as many shares as you can and watch the stock quickly climb in value.

Friday, February 7, 2020

Frozen II - FROZ2.BW - Blockbuster Warrant

Frozen II has been another runaway box office success for Disney, grossing $472,819,959 and counting. HSX predicted big things for the film, setting the Blockbuster Warrant at a high $370,000,000, but clearly the film has toppled that number with ease. At the current price, you would expect the warrant to trade at roughly $102, since that is the guaranteed payout. Yet FROZ2.BW is currently trading at $20.66, more than $80 below value. That means if you buy the max number of shares, you'll walk away with more than $1.626 million in just a few weeks.


Recommendation: No matter the size of your portfolio, buy as many shares as you can and hold them until they cash out for a quick, big boost to your portfolio.

Knives Out - $100M Blockbuster Warrant - HSX Pick of the Day for February 7, 2020

Rian Johnson's Knives Out has been a runaway hit, earning an Oscar nomination, major box office, and an upcoming sequel. As of February 7, 2020, the film has earned $156,359,119 in domestic box office.


Last month, HSX issued a derivative allowing HSX investors to invest in the film's long-term box office success. The threshold for the derivative was set at $100M, meaning that for every $1M grossed beyond that, the derivative would increase in share $1M. Given the current box office haul for Knives Out, the derivative should be trading at a minimum of $56.35, as this is the minimum value of the derivative once it prices out even if the film doesn't make another dollar (unlikely since the film is still grossing a couple of hundred thousand dollars per day). Yet the derivative is currently trading at $17.11, a guaranteed $39.24 below value.


This means that if you buy the maximum 20,000 shares of the stock, you are guaranteed at least $784,800 when the derivative cashes out in two weeks with absolutely no risk.


Recommendation: This is a no-brainer for any size portfolio, as your stock will more than triple in value in just two weeks.