(DECZ) TrueShares Structured - Ratings and Ratios

The TrueShares Structured Outcome (December) ETF (BATS:DECZ) is an actively managed exchange-traded fund that employs a unique options-based strategy to achieve its investment objective. By investing substantially all of its assets in options on the S&P 500 Price Index, the fund seeks to capitalize on the performance of the underlying index. Specifically, it purchases call options and sells put options on the S&P 500 Price Index or a tracking ETF on each Initial Investment Day, with an expiration date set on the next Roll Date.

This investment strategy is characteristic of a defined outcome ETF, which aims to provide investors with a specific risk-return profile. By buying call options, the fund gains exposure to potential upside movements in the S&P 500, while selling put options obligates it to potentially buy the underlying index at the strike price if it falls below that level on expiration. This approach can help mitigate downside risk while still allowing for participation in potential market gains.

From a technical analysis perspective, the current price of DECZ is $37.39, indicating a bullish trend as it is above its 20-day, 50-day, and 200-day simple moving averages (SMA20: $36.08, SMA50: $35.60, SMA200: $36.35). The Average True Range (ATR) of 0.62, or 1.66%, suggests relatively low volatility. Given these technical indicators, a potential forecast could be that DECZ continues its upward trend, potentially reaching its 52-week high of $38.18 if the S&P 500 Index performs well.

Fundamentally, the funds Assets Under Management (AUM) stand at $71.23 million, indicating a moderate level of investor interest. Combining this with the technical analysis, a forecast could be made that if the S&P 500 continues to rise, DECZ is likely to benefit from its call options, potentially driving its price higher. However, if the market declines, the sold put options could result in losses, potentially capping the upside and impacting the funds overall performance. Therefore, a prudent forecast would be for DECZ to continue to track the performance of the S&P 500, with potential for growth if the index continues its upward trend, but with a defined risk profile due to its options-based strategy.