Trading Options on Index ETFs

In general these options - QQQQ, SPY, IWM are very liquid, dollar strikes and penny priced. So they are easy to trade which does not guarantee profitability of course. CBOE just introduced weeklies on these ETFs, these are very new

Trade the Indicies: SPY, DIA, QQQQ, IWM, etc.
http://www.stocks-options-trading.com/

http://www.qqq-options-trading.com/support/site_guide.asp

http://www.craftystox.com/index.asp

"ETF Daily Buy and Short Signals" which can be used to trade the DIA's, QQQQ's and SPY's:

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Jano... on ETF's you should look at the pair if one exists (and they usually do).
I am trading TWM and UWM (currently the stock index - not options). Another pair is TZA and TNA (triple leveraged). ERX and ERY are an energy pair. You can find more by typing in bullish or bearish in the symbol lookup.

In each, one is bullish and the other bearish. Knowing that most ETFs pairs decline in overall value over time, I want to be long on the side of the index that is below the mid point price of the bullish and bearish index. I will trade that side up and down until it gets back to an even point. Taking into account the overall decline of ETF pairs, I think that shorting the side above the mid point is probably better, but I have not gotten to the point of shorting stock yet.

As mentioned above, I think it makes sense to trade the most liquid options to reduce the effects of the bid/ask spread. Another think to look at is - what is a reasonable movement up or down over a specified period of time? whether it be a day, a few days, a week or a month.