IMAX/Jabob - The biggest threat to IMAX that I see is Odeon Theaters' iSense, which they have rolled out in the UK. Odeon is the top chain in the UK and they were bought for $921M last year by AMC, who are, in turn owned by China's Wanda Group. Nonetheless, I think there are problems with iSense as AMC recently signed a deal for 25 new IMAX theaters in Europe but you can see how any kind of competitor spooks investors.
Again, the key issue here is that IMAX is being used by filmmakers so films are shot in IMAX and know it's worth it due to the installed base - it's going to be very hard to break that monopoly as it took IMAX about 30 years to get widely adopted as no one is going to risk a $200M movie on unproven camera technology (think Zeiss).
IMAX is simply so ubiquitous at this point that they've become a proxy for Hollywood's box office, so they'll go up and down for reasons that have nothing at all to do with the health of their actual business.
Total buy at this price!
Sell 10 Dec $21 puts for $1.85 ($1,850)
Buy 10 Dec $20 calls for $2.90 ($2,900)
Sell 10 Dec $24 calls for $1.20 ($1,200)
That's a net $150 credit on a $4,000 spread and all IMAX has to do is stay over $20.58 and you break even and holding $21 makes you $1,150 and things get better from there!
/RB/Latch - I'm not enthusiastic about shorting it because it never got very high.
Even if you think we're going back to $1.30, we're only in the middle of the range but yes, you can play short at the $1.50 line with VERY TIGHT STOPS above because it only takes a word from OPEC to pop it up .05 on you.
