Recently Movie futures exchange proposal is cleared by Commodities Futures Trading Commission, USA and is waiting for US congress vote. See the news item here. Once it comes into existence, it will allow investors in Movie industry to hedge their risk. Once it makes it there we may also follow suit, as most of our script writers spend all of their time watching English DVD's just for inspiration.
I can understand your impatience. I will come to the point. If and when Movies futures are allowed in India, all that you guys have to do is, this.
- First bring together all your lot (fans of your star)
- Commit money. Never mind about your family's needs
- Go short. That is, place a bet that the movie will flop. It is important that your collective bet size is as huge as possible. Make sure to bring together the entire fan club and make everyone to commit to star's future and his dream chair. Remember to forget your family's needs.
- Once all your bets are placed, the gambler who runs the bet will be praying for the movie to run. He or they, will not only pray, but also get into action. They will promote the movie in every form and manner(including arm twisting). You will need no longer worry about SMS's. All mobiles will be inundated with messages promoting the movie and the star and how blessed we are all to have such a star in our midst and how great the movie is.
Your risks will be well covered. Of course you will have empty pockets. Never mind, after all it is for your star and for his dream chair that you are spending. Also you can live peacefully for another 3 or 4 months before his next movie hits the screen.
By the way, what if Movie Futures doesn't make it to India. Simple ask your star to act in Hollywood movies. You can also feel proud about feeding Tamil scriptwriters. More importantly your star can start dreaming about the big brother's chair. But the downside is you will all have to spend in dollars and also migrate to a country that allows trading in foreign securities. Any thing is worth promoting your star. Go ahead.
Have a fun time.
Disclaimer
Any intended representation of any particular star is completely unintended
I don't uderstand the financials of this. Futures trading looks to me like gambling. And this, even mor so. Am I right?
ReplyDeleteFutures is not gambling. You are basically hedging your risk. For example, an investor who finances a movie may want to hedge his risk in the following manner. He may convert his risk into securities and sell it to investors who want to buy. In that scenario the investor (seller in this case) pays a certain % of amount of buyers (those why buy the risk securities) like a insurance premium. If the movie runs the movie investor will get nothing and his loss is the premium he paid. If the movie flops then the buyers will pay the movie investor to the extent they shared the risk. It is more like a insurance against future uncertainty.
ReplyDeleteBut bets are gambling. Just placing a bet that the movie will run or flop is pure gambling.
Thank you.
ReplyDeleteis it possible to do something similar in tamil movies?
to offset the losses. it seems the industry is reeling under a succession of big budget movie flops.
Not till movie futures is permitted in India. May be the produces and the investors can approach the insurance firms to write a policy covering their risks. It is possible and legal but only that it will be very difficult to find one such sophisticated and aggressive insurer in India
ReplyDelete