Lock-In profit?

With YRCW around 1.90, what happens to a position consisting of 100 shares sold short at 1.90, and 1 sold July 2011 put at the $2 strike for a .40 credit, if the stock goes to zero, goes bankrupt, or whatever the worst-case scenario is specifically called. Since the market went in the traders favorable direction, was profit made regardless? Susan

 

Covered put, not immune to loss.

 

If YRCW closes below 2.30, shouldn't the position at least be even at worse?

 

Sell 1 $2 put for 40 cts
Short 100 shares @ $1.90

If YRCW below $2 at exp, assigned and cost basis is $1.60

Max gain of 30 cts below below $2 (-2.00 +.40 + 1.90)
BE at $2.30
Unlimited loss above $2.30