I was toying around with the idea of trading spreads based on the sectors and just using ETF options. I checked a couple of them and find that the option chain is not very robust or they are strikes at $5 increments. So I will put my sector rotation plan on hold until I take the time to find some sector representative securities that have good option chains to trade.
I could just buy long ETF options depending upon where the sectors are in relation to the S&P in terms of trending but I am finding that I am liking both the idea and the execution of the spreads as I am starting out.
I did buy another book the other day, "The Bible of Option Strategies". It outlines the 60 or so main methods of setting up options in conjunction with stocks, in place of stocks combined and singularly. Not too in depth in the practical application but all the pertinent details that go into determining which ones to use. It is up to me to determine when and exactly how, but that is what I like to do best.
Jeff.
Questrade, My direct access discount broker.
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