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REDDIT

Can I protect downside of a short put by shorting the stock?

E
Feb 25, 2025 · 07:00

Example: Short 1 put on XYZ at strike 30 and it's expiring today (Friday). The share price during the day is 29.90, but I don't want to close the position for various reasons. I will probably be assigned 100 shares tonight or tomorrow. The stock might drop further throughout the day, after market, and Monday morning. Can I lock-in a 0.10 loss by shorting 100 shares of XYZ? I'm having trouble working through the mechanics/logic of it. Thanks, guys.