We wanted to see if there was some advantage by trading a specific sector over another.
Looked at all 9 SPDR Sector ETFs
Sold 1SD strangles, 45 DTE
Recorded and compared win rate, duration, PnL per day, and SD of PnL
We found that duration and win rates are consistent across all sectors, and the tradeoff of more profit in a specific sector was an increase of standard deviation and implied volatility.
For more on how to incorporate this information into your trading and portfolio management, check out the segment.
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