(SEPZ) TrueShares Structured - Ratings and Ratios

The TrueShares Structured Outcome (September) ETF (BATS:SEPZ) 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 while managing risk through a combination of call and put options.

The funds investment strategy involves purchasing call options and selling put options on the S&P 500 Price Index or an ETF that tracks the index on each Initial Investment Day, with an expiration date on the next Roll Date. This approach allows the fund to potentially benefit from upside movements in the S&P 500 while capping potential losses. The defined outcome category of the ETF suggests that it is designed to provide a specific risk-return profile, which may appeal to investors seeking to manage their exposure to market volatility.

Analyzing the funds recent price action, we can observe that it has been trending upward, with its last price of $38.54 exceeding its 20-day and 50-day simple moving averages (SMA) of $37.04 and $36.69, respectively. The 200-day SMA stands at $37.60, indicating a longer-term uptrend. The average true range (ATR) of 0.48, or 1.24%, suggests relatively moderate volatility. Given these technical indicators, we can forecast that the fund may continue to experience upward momentum in the short term, potentially driven by the ongoing bullish trend in the S&P 500.

Considering the funds assets under management (AUM) of $104.02 million, we can infer that it has a relatively modest size compared to other ETFs. However, its active management strategy and defined outcome structure may attract investors seeking to balance risk and potential returns. By combining the technical and fundamental data, we can forecast that SEPZ may continue to perform in line with its investment objective, potentially offering a compelling risk-adjusted return profile for investors. In the near term, the funds price may be influenced by the upcoming Roll Date and the overall market conditions, which may be affected by the S&P 500s performance.

Based on the available data, a potential forecast for SEPZ is that it may continue to trade within a range of $37.50 to $40.00 in the short term, driven by the ongoing trend in the S&P 500 and the funds options-based strategy. A break above $39.48 (52-week high) could signal further upside potential, while a decline below $37.00 may indicate a reversal in the trend. Investors should closely monitor the funds performance and adjust their strategies accordingly.