The People Watch the Watchmen

Apparently a lot of people watch the Watchmen. This weekend, so far, Watchmen brought in a gross of $55,655,000 at 3,611 theaters for an average of $15,413 per theater in only 3 days as of 7:00 PM, Sunday, March 8th, 2009. The company that distributes this movie is Warner Brothers, a subsidiary of Time Warner Inc. (TWX)

Current TWX is priced at $7.47 per share with weak relative strength and oversold conditions in both Stochastic and MACD. The Stochastic and the MACD, however, show signs of reversal. Also, the price movements of the past two days just barely illustrates a bullish engulfing candlestick pattern. Not very promising in my opinion, but there is some probability.

I am not one to put a lot of money on a stock that has low probabilities but I am more likely to put money on the options for it. The 7.00APR09 call option is just in-the-money (ITM) and costs $0.86 per contract share with a Bid/Ask of 0.85/0.90. The 8.00APR09 put option is just ITM and costs $1.00 per contract share with a Bid/Ask of 0.90/0.95.

I won't be playing this, but I will be watching it for future reference as to the effect of box office earnings on the stock.

Investor's Opinion: Who watches the Watchmen?

That is my opinion, you can take it or leave it.

Disclaimer: I am not a stock broker; I am not a financial advisor; I am not recommending to you what to buy or sell. I am just an opinionated investor. If you decide to follow in my footsteps you are taking risk. It is inevitable that I may be wrong. So if you are going to follow in my footsteps that is your own personal decision. I am not responsible for any loss that you may, and probably will, incur regardless of my opinion.