If you are looking to diversify your portfolio I suggest you try the Iron Condor set up in the Russell 2000 (RUT). This setup will produce 40% or better annual gains and can be managed with little time and effort.
Below is a screenshot of the Russell 2000 Index options page, on the Thinkorswim platform.
Notice the two orange squares. The green and red boxes inside are my debit spread position on each side creating an Iron Condor. What you want to look at here is the DELTA. Outlined green in the image below.
This trade is about to expire so the delta is worthless @ .01 on both sides.
When you search for this trade you are looking for a DELTA of .08 - .11.
When you find this trade you then analyze it in using the Analyzer tab on the Thinkorswim platform as seen in the image below. This image shows the Call side @ 99.81% chance of expiring worthless (it expires tomorrow). When you analyze a set up you are looking for an 85% chance or better of the option expiring worthless. You do this on both sides, evident in the two images.
CALL side above
PUT side below
I will post my next Iron Condor trade next week. I will highlight everything just like the above images so you will be able to see what to look for at the initial stage of the setup.
I highly recommend you learn in simulation for six months minimum.
Great trading everyone.