The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to go through the 11 different stock sectors and basically how you can use these to help diversify some of the trading that you do. As many people know, there's a lot of different sectors and industries that you can generally invest in. We know the big broad ones like energy and healthcare and technology, but there's actually just 11 that are the global industry classification standard or GICS and so, this is what most brokerage platforms, most institutions, mutual funds, hedge funds, ETFs use as the main classifications of different industries or stock sectors. Now, when you’re trading options, it's my opinion that you should absolutely be invested across a broad variety of different sectors and industries. I think this helps reduce not only the asymmetric risk from one or two sectors blowing up or making these big moves, but also helps smooth out returns and we’ve seen in back-testing, helps enhanc