---
title: "Sector ETF Spreading + AI Strategy"
slug: "sector-etf-spreading-ai"
updated: 2026-04-29T15:03:16Z
published: 2026-04-29T15:03:16Z
canonical: "learn.trademachine.com/sector-etf-spreading-ai"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://learn.trademachine.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Sector ETF Spreading + AI Strategy

This is a discussion of the [TradeMachine® Platinum exclusive](/v1/docs/upgrading-to-trademachine-platinum) "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

![image.png](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image%28127%29.png)

#### 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**

![image.png](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image%28124%29.png)

#### Earnings Handling for Sector ETF Spreading + *AI*⚡Strategy:

- [Nothing Special](/v1/docs/earnings-and-trademachine)

#### Sector ETF Spreading + *AI*⚡Close Conditions:

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

![image.png](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image%28125%29.png)

#### Open next trade for Sector ETF Spreading + *AI*⚡:

- [At Normal Time](/v1/docs/what-does-the-and-open-next-trade-at-normal-time-and-re-open-immediately-mean)

![image.png](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image%2871%29.png)

## Related

- [Getting Started with the Today Tab](/getting-started-today-tab.md)