covered calls

[Thaddeus Peacock <thenoz@xxxxxxxxxxxx>]

A long conversion is:
	1) Long Stock
	2) Short call
	3) Long put
This position is equal to zero.

  +(Stock)-(Call)+(Put)=0

  Subtracting a Put from both sides of the equal sign(=)

 +(Stock)-(Call)+(Put)-(Put)=0-(Put)     

 Puts cancel out and lose the zero leaves

 +(Stock)-(Call)= -(Put)     



Therefore, Long Stock and Short Call = Short Put


Thad