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Strategies & Market Trends : Options

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To: Tom K. who wrote (1210)1/21/2000 12:49:00 AM
From: rkral  Read Replies (1) of 8096
 
<<If you have a short PUT and then short the stock, should it drop, you keep the premium and make on the stock drop as well>>

If the stock drops the put will be exercised and you will now own the stock with which to cover the short position. The funds for the put exercise would be about equal to the proceeds of the stock shorting transaction. You do get to keep the put premium .. but you don't "make on the stock drop as well".
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