Hi everyone I'm a newcomer in this forum. This is my very first thread. Here is a problem I have: I sell 100 shares of ABC Company short at $100. Also, I buy a 40 call option for $5 to protect against stock price going up 1. If the stock ends up at $110, what will be my overall gain/loss? 2. If the stock ends up at $50, what will be my overall gain/loss? 3. What is the most I can lose under this short sale-call option plan? 4. If I have an unprotected short sale position (no call option), what is the most I could lose? 5. Under the conditions described in (4), if I have a limit order to buy the stock and close out the position at $54, what is the most I could lose? Kindly leave me your solution. Thanks a lot.