Sector ETF Spreading + AI Strategy

This is a discussion of the "Sector ETF Spreading + AI⚡" strategy.

Overview

• Short Put Broken Wing Butterfly
• 3 legs
• Used with Only these tickers: IWM, QQQ, XLF, XLU, XLK, XLV, XLB

Sector ETF Spreading + AI⚡Strategy Settings

Sector ETF Spreading + AI⚡ Open Conditions:

• In the last year, the kurtosis (tailedness) of the stock returns has been above 1
• 6 month asymmetry (skew) of up vs down stock returns above 1
• On the day, the stock moves down 0% or more
• RSI 5 Days is below 70

Details on Options TradeMachine is Selecting for Sector ETF Spreading + AI⚡Strategy:

• 1x long 37 delta put near 30 days to expiration
• 3x short 25 delta puts near 30 days to expiration
• 2x long 10 delta puts near 30 days to expiration

Earnings Handling for Sector ETF Spreading + AI⚡Strategy:

• Nothing Special

Sector ETF Spreading + AI⚡Close Conditions:

• Gains are above 80%
• Options reach expiration (Close all legs with front month options)

Open next trade for Sector ETF Spreading + AI⚡:

• At Normal Time