Hello everyone. I am new to the Elite trader forum. I have been trading options for about two years now. Mainly vertical spreads / iron condors on a few select stocks and ETFs. Here is my question. I am tired of giving up so much of my premium to buy the downside insurance and want to run a strategy that I have been back testing so you can poke holes in it if you see flaws. I will use the SPY in this example. Say I sell a 5 lot of the SPY at the 100 strike price today for 1.55. I would collect $775.00 in premium. I then put in a sell order for one contract on the e-mini sp also at 1000. If the SPY blows past my 100 short position it would trade perfectly hedged all the way down. So that if on exp day the 5 lot of SPY is trading at 90 I would have a 5K loss on that position but a 5K net gain on the e-mini position for a total net loss of $0 and I would still collect my premium of $775.00. This would equal almost a 4% net profit for the month. Not bad for almost no downside risk. Here are the flaws in the strategy that I have come up with but I am still looking for input. 1) I would have to manage the e-mini contract so if it dips below 1000 a sell order would take place and if it popped back about 1000 I would have potentially unlimited risk. I would need a way to auto execute getting in and out of the e-mini contract which leads me to my second flaw. 2) Commisions eating up my collected premium moving in and out of the e-mini contract. I did the research for the past year and it actually happened fewer times than what I would have thought but there is always a chance for that to happen 3) Gap opens from either from the upside or the downside happening on open Sunday. I also back test this for the last year and it would have effected any of the trades. What else am I missing here. Also if you can do this from the put side you can sell calls just out of the money and have a buy order in for the es at whatever strike that would be to increase your premium / profit. Thanks for your input.