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.
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