Help with a Brain Fart Combo Question

[SoCalOptionsWriter]

I suspect the short price was a market close aberration stemming from a last second price spike. Will know on the market open.

 

[wxytrader]

Ok, Let's say I short a stock at the last close on Friday and get that price, $288.50. And I simultaneously sold a one week OTM put at a 287.50 and bought a one week ITM call at 287.50 for a combined premium credit of $450.

Now if the stock closes below the 287.50 strike, I get an extra $100, right, as the short put when it expires it will take away (sell) my short stock at $287.50.

And if the strike closes above the strike, my long call kicks, in and the short is bought back for a gain of $100.

Thus my gain here is $550, no matter what the stock does.

Can this possibly be right? If not, where have I gone wrong?

Question.

If you short 100 ABC stock you can buy to close the position by buying 100 shares.

If you also sold an ABC put and it expires itm then you have to buy (assigned) 100 shares.

Does this also simultaneously close your ABC short in the same transaction?

 

[Robert Morse]

Yes, the assignment would close your short stock.

Question.

If you short 100 ABC stock you can buy to close the position by buying 100 shares.

If you also sold an ABC put and it expires itm then you have to buy (assigned) 100 shares.

Does this also simultaneously close your ABC short in the same transaction?