Chapter 110: The Age of Blockbusters

It was five in the morning.

Without the sound of an alarm, Simon woke up on time as usual. Ever since he started building his positions with that fund, he had been getting up at this hour.

The woman clinging to him and the pleasant scent in the bedroom instantly reminded Simon that he wasn't in his apartment at the Century Towers.

Held like a pillow by Janet, Simon didn't immediately get up. Instead, he turned his head to look at the woman still deep in sleep beside him. Stray blonde hairs lay across her rosy, fair cheeks, her lips slightly parted, and her eyelashes long and luxurious—her sleeping face exuded a lazy contentment.

After a moment's gaze, Simon felt an inexplicable sense of peace.

Perhaps.

This was his 'place of comfort.'

He leaned over and gently kissed Janet's lips before carefully extricating himself from her embrace.

The villa's layout hadn't changed since he last left.

After freshening up, Simon went to the gym for a half-hour jog and took a shower; by then, it was six o'clock.

There weren't many types of futures in North America at the moment, and Simon had placed his bets entirely on the S&P 500 index futures, which he could predict and which also had the highest market trading volume.

Launched by the Chicago Mercantile Exchange in 1982, the S&P 500 index futures currently saw daily contract volumes between 80,000 and 100,000, occasionally exceeding 100,000. Thus, Simon, the 'butterfly,' could remain inconspicuous within this volume. This also bolstered his confidence that the S&P 500's curve in the coming months would not deviate too far from the data in his memory.

Since the electronic trading system hadn't yet emerged, index futures were still traded the old-fashioned way on the floor, from Monday to Friday, 8:30 AM to 3:15 PM.

Chicago was in the Central time zone, two hours ahead of Los Angeles. When it was six o'clock in the morning for Simon, the Chicago Mercantile Exchange was nearing market opening.

After making himself a pot of coffee, Simon settled behind his large desk in the study and called Noah Scott while holding a cup of coffee.

As they quietly discussed the trading plan for after the market opened, Janet floated into the room in her pajamas and curled up in Simon's lap like a kitten, then closed her eyes again.

Simon lowered his voice and continued speaking with Noah Scott for a while before hanging up. He then patted Janet gently and asked, "Want some coffee?"

Janet shook her head: "Haven't brushed my teeth yet."

"How about I carry you back to bed, and we sleep a bit more?"

"No," Janet shook her head again, perking up slightly, and lifted her face to ask, "Did you just have Noah buy another 800 contracts?"

Simon nodded, "Yes."

"That makes 4500 now," Janet squinted and quickly did some mental calculations, "4500 contracts, with the positions built between 270 and 275 points, that's about $60 million in margin, over 80% holding ratio, with only $15 million in liquid funds left. Wow, Noah's going to think you're even crazier. You're not planning to keep adding, are you?"

Simon wrapped his arms around her soft body, "No more adding, this is it."

Janet's hands roamed over Simon's chest, her eyes sparkling as she looked at him, "But, you could still easily lose a lot like this. Are you sure it's okay?"

Simon's position now meant that every 1-point move in the S&P 500 index represented a potential $2.25 million in profit or loss.

Although futures trading didn't involve daily debt settlement at the time, if the cumulative losses in the Westeros Company's account exceeded the remaining $15 million in liquid funds, Simon would need to add more margin, or the broker would forcibly sell some of his contracts to ensure the account had sufficient funds.

By that calculation, Westeros's 4500 long contracts, beyond the $60 million in fixed margin, could only withstand about a 15-point drop in the S&P 500 index, which was roughly 5% of the index.

However.

In just the past four months from the beginning of the year, the S&P 500 index had already experienced two major ups and downs within the 250 to 300 point range, with the largest price swing nearly 20%.

Compared to this volatility, Simon's current position was utterly unsustainable.

After all.

If the S&P 500 were to experience another drop of around 20%, exceeding a 50-point drop, the theoretical loss per contract at the lowest point would exceed $25,000. For 4500 contracts, the total losses would amount to $112.5 million, far

 exceeding the $75 million principal in the Westeros account.

Of course.

Unless there was a major crash like the ones in his memories, Simon could still exit his positions early, but he would still face substantial losses.

If he lost even half, that would still be $37.5 million.

In this era, the American dollar was still very valuable.

The Palisades mansion where Simon and Janet now lived wouldn't be touched for less than $20 to $30 million decades later, but even at the peak of the American real estate bubble in the 1980s, it was only worth $4 million.

Clearly.

Simon was currently in a precarious situation where he could potentially lose the equivalent of ten of the era's top-tier mansions.

No wonder he was considered mad by Noah Scott.

However.

Risk and opportunity always coexist.

While many Wall Street analysts were predicting a potential market downturn, Simon distinctly remembered that the current level of around 270 points for the S&P 500 index was actually the lowest point for the next four months.

Compared to the previous four months of sharp fluctuations, the next four months would see a very stable rise in the S&P 500 index, with hardly any significant volatility.

Therefore, Simon likely wouldn't even need to use that contingency loan; the remaining $15 million in liquid funds in the Westeros account should be sufficient to withstand the mild fluctuations in an overall upward trend.

At that moment.

Looking into Janet's eyes wide with feigned concern, Simon couldn't help but lower his head to peck her lips again, chuckling, "You're not hoping I'll lose it all, are you? By then, Westeros might only have me to settle its debts."

Janet pushed Simon's head away with her hand, her worried expression instantly turning into a smile, then touched his cheek and said, "I would take good care of you, little Simon."

It was indeed so.

Simon inwardly sighed, suddenly grasping Janet's proffered arm, feeling the woman melt into his embrace, and said, "See, face reality."

Janet's eyes stayed soft as she murmured, "You little rascal."

Simon laughed as he hugged Janet, who was nearly sliding off his lap after relaxing, listening to her feigned complaints without any real bite, and noticing her beautifully manicured nails painted burgundy, he felt inspired.

Holding her fair face in one hand for a moment, Simon felt as if he'd found something elusive.

Janet was the kind who preferred a natural look, and her excellently maintained appearance allowed her to present herself without makeup.

However.

With bright red lipstick and a slight change in her manner of speaking, she could embody the sultry, seductive, accented—even dangerously deranged—characteristics Simon needed for the taxi driver role in his film.

Bending to peck her lips again, Simon said, "Honey, there's a role in my movie you could play. How about it?"

Janet shifted slightly, still speaking softly, "Which one?"

"Esmeralda Villalobos."

Janet blinked a few times, "Okay, but I don't know how to act."

"That's alright, I'm the director. Directors love to personally coach their actresses."

"Haha, you little rascal," Janet giggled, pinching Simon lightly, then added, "By the way, what about that animated film you mentioned last time? I'm really looking forward to it."

Although they hadn't seen each other recently, Simon had Neil pass the manuscript to Janet the day after their phone call, and they had discussed it several times over the phone since.

Hearing this, Simon shook his head regretfully, "Disney only wants to buy the script, they're not willing to produce it for us."

Janet tilted her head, "What do we do then?"

Thinking of an animation studio still tucked away in a corner of San Francisco, Simon said, "This might be for the best. Perhaps we could try a different form for making this movie."

Janet looked puzzled, "Hmm?"

Simon didn't hide his thoughts, "What do you think about making this animated film in 3D?"

Janet blinked again, clearly unfamiliar with the concept of a 3D animated film. This wasn't surprising, as 3D animation was still in its infancy; Pixar had only produced a short film of just over two minutes, "Luxo Jr."

Simon patiently explained, "Remember the animated opening of 'Run Lola Run'?"

Janet paused, then said, "I remember, Pixar."

In fact, Janet recalled more.

Such as.

The page from a newspaper she had seen in Simon's study, clearly marked with Pixar's name.

Hmm.

The little rascal must have had this idea for a while.

And used the excuse of giving a gift to deceive her.

Humph.

But a smart woman would never reveal such things.

So, she wouldn't reveal it.

Unaware of Janet's

 thoughts, Simon looked at the coquettishly naïve woman in his arms. Although he instinctively felt Janet was scheming something in such moments, he didn't press further and nodded, "Yes, Pixar. If possible, we'll buy it and then produce a 3D animated version of 'The Lion King.'"

The original "The Lion King" had a global box office of over $900 million, holding the title of highest-grossing animated film for over a decade before being surpassed by "Toy Story 3" and "Frozen."

Now.

Unless willing to relinquish the script, the likelihood of getting Disney's original team to 'outsource' "The Lion King" was slim. Michael Eisner was right; outside of Disney, it was nearly impossible for Simon to find another excellent 2D animation film team.

Thus.

Over these days, Simon had gradually formed another bold idea.

To produce a 3D animated version of "The Lion King."

Although, based on Simon's knowledge of current 3D animation technology, achieving the fluid effect of 2D animation wasn't easy, Simon was not in a hurry; he could wait a few more years if necessary.

Technical issues, as long as they can be resolved, are not truly problematic.

Many excellent animated films later on would prove that Pixar certainly had the technical capability to solve these issues.

As for whether the future 3D version of "The Lion King" could achieve the past box office miracle, Simon wasn't too worried.

The film industry is the most risky business in the world.

But at the same time.

It is also the purest form of business in the world; as long as a film is of high quality, audiences are willing to buy tickets to the cinema.

Therefore.

Whether it's 2D or 3D, "The Lion King" is still "The Lion King."

Even if Simon perfectly replicated the original 2D version of "The Lion King," there were still many uncertainties about reaching the past box office success. By comparison, a 3D version of "The Lion King" could add even more appeal to the film.

After chatting a bit more, Simon and Janet left the study.

Janet went to change and freshen up, while Simon went downstairs to prepare breakfast.

At about eight-thirty, they left the Palisades mansion, Simon heading to the Daenerys Films headquarters in Santa Monica, and Janet to her studio in Venice Beach.

Their sudden reconciliation after a month apart inevitably sparked another round of intense pursuit by the paparazzi.

However, accustomed to this kind of attention, both of them remained largely unaffected.

It was mid-May now.

The next day, Columbia Pictures' "Ishtar," starring Warren Beatty, Dustin Hoffman, and French actress Isabelle Adjani and costing $55 million, premiered on 1139 screens, heralding the official start of the 1987 summer box office season.

Having just watched Catherine's first feature film "Night of the Blood Zombies," which was set to release on June 19, Simon was aware that, despite being a bit squeezed into the summer season with his 'assistant director' gimmick, Delaurentis Entertainment had managed only to secure 500 screens for the movie's opening.

Simon had expressed his concerns to Delaurentis Entertainment's president, Martha Schumacher, the day before.

Simon didn't mind using his name a bit more for the film's promotion. However, delaying the release to August or September would clearly have been better, as the less competitive off-peak season could have easily secured over a thousand opening screens.

Martha Schumacher told Simon that "Night of the Blood Zombies" would likely be the last film Delaurentis Entertainment distributed before going bankrupt; they simply couldn't wait a few more months.

To this, Simon could only feel helpless.

After instructing Noah Scott to buy the last batch of long contracts, Simon temporarily let go of this matter, focusing all his energy on the production of the three films under Daenerys Films.