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A Covered-Call Trade on Marvel's "Hulk"

 Jun 14, 2008 08:57 PM UTC
Symbol Sentiment Start Return Closed
MVL Neutral/Hold 06/14/08 +46.46% --

6/13 - "I remain a long-term bull on Marvel, but I believe the stock is more likely to sell off than pop on Monday, when the box office numbers for Hulk are released.

I also believe there is a good shot that the stock will be stuck in neutral next week. My thesis this time around is that analyst expectations are too bullish for a film that may very well just meet expectations."

"A covered-call strategy could work perfectly here. This is where you own the stock, and sell, or write, calls to collect immediate income. The bet being made is that the stock in the short term will either move lower or stay flat...I believe the stock, at roughly $36 today, is fairly valued, assuming the Hulk grabs that $150 million box."


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6/11 - "Despite the massive success of ’Iron Man’, concerns about ’The Incredible Hulk’ have remained a negative for Marvel shares. However, buzz for the movie has improved markedly over the past few weeks, and we now believe that concerns about the box office prospects for ’The Incredible Hulk’ are largely unwarranted. We are raising our domestic box office estimate for the film from $125MM to...
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wwa4   N/A     1 point   commented 509 days ago reply

WWA4 wrestling school uses Marvel Comics to teach advanced vocabulary and charactor development. We're going to see Hulk tomorrow and if it is really good we will buy more shares.
WWA4


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