With XYZ around $20.00, a hundred shares are sold for $20.00, one July 15 ITM Call is purchased for $6, and one July 15 OTM put is sold for $2.00. This reverse conversion position would begin with a $1.00 credit. Looking over the risks, early assignment seems to be the most emphasized among trading authors. example: With July options expiration date in a few days, and the above scenario being true, lets say prices go down from $20.00 to $10.00. Lets now assume the July 15 OTM put sold for $2.00 is exercised by the purchaser, closing out our 100 share short position. A $2.00 profit would be received from the exercised short, and the long July 15 call loss would be covered by the 100 shares we shorted from $20.00 Shouldn't a $1.00 profit be guarenteed regardless of future movement up until July's option expiration date. There isn't going to be a margin call, and, we could sell the long call if we choose. I'm not including the risk of the stock in question becoming unshortable in the middle of our trade. Would someone help me in understanding the risks involved I'm overlooking?