Replies to post #672 on Selling_Options

[zivtheziv]

That's exactly how I did it

The insurance is already priced in

[viking86]

You can see the 7% insurance from the difference bw current pps and the lower strikes of his spreads. For example if pps is 100 he would theoretically choose 93 and 107 as the lower strikes of the put and call spreads in the iron condor. As long as the stock doesnt reach those limits at expiry he gets 100% of the credit amounts he was paid when he wrote the spreads. Hope that answers your q.