Jim:Thank you for your answer. I see this hedge technique can be very useful when a PUT seller waiting for the shares to be assigned ( or expiration) while the stock value is on the way down. a) short the stock means - Buying the PUT, correct? would have been out a net of $0 and owned 0 shares net Loss would have been = Cost paid for the PUT + $30 per share ( $230-$200) - correct? In summary the net loss could have been minimized instead of a huge loss ( $115/share) and waiting for 2 years to recover etc.This is a great learning for me!-MMR
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