(FSEP) FT Cboe Vest U.S. Equity - Ratings and Ratios

The FT Cboe Vest U.S. Equity Buffer ETF - September (BATS:FSEP) is an exchange-traded fund that employs a defined outcome strategy, primarily investing in FLEX Options that track the performance of the SPDR S&P 500 ETF Trust. FLEX Options are exchange-traded, customizable contracts that allow investors to tailor key terms such as exercise prices, styles, and expiration dates to suit their needs.

As a non-diversified fund, FSEPs investment approach is centered around mitigating potential losses while still capturing upside potential, up to a certain cap, by utilizing the FLEX Options. This strategy is designed to provide a buffer against the first 9.7% (as per the funds objective for the September series) of losses in the underlying SPDR S&P 500 ETF Trust, hence the name Buffer ETF.

Analyzing the funds recent performance and technical indicators, we observe that the last price is $46.71, slightly above its 20-day Simple Moving Average (SMA) of $46.62, indicating a potential bullish trend. The 50-day and 200-day SMAs stand at $45.35 and $45.45, respectively, suggesting a longer-term uptrend. The Average True Range (ATR) is 0.34, or 0.73%, indicating relatively low volatility.

Given the current technical setup and fundamental data, including an Assets Under Management (AUM) of $816.14 million, we can forecast that FSEP is likely to continue its upward trajectory, potentially reaching the 52-week high of $47.07, if the underlying SPDR S&P 500 ETF Trust continues to perform well. However, the buffer feature is designed to protect against downside risk, so significant losses are mitigated. Investors should closely monitor the funds tracking performance relative to its underlying index and adjust their strategies accordingly.

Based on the technical and fundamental analysis, a potential trading strategy could involve buying FSEP on dips towards the 20-day SMA, with a target near the 52-week high, while keeping a close eye on the overall market conditions and the performance of the SPDR S&P 500 ETF Trust. Its essential to set appropriate stop-loss levels, potentially around the 50-day SMA, to manage risk.