(FTQI) First Trust Nasdaq BuyWrite - Ratings and Ratios

The First Trust Nasdaq BuyWrite Income ETF (NASDAQ:FTQI) is an actively managed exchange-traded fund that employs a hybrid investment strategy, combining equity ownership with a call option writing strategy on the Nasdaq-100 Index. By selling call options, the fund generates income, which is then distributed to its shareholders, making it an attractive option for income-seeking investors.

The funds investment strategy involves holding a portfolio of equity securities listed on U.S. exchanges, while simultaneously writing (selling) U.S. exchange-traded call options on the Nasdaq-100 Index with expirations of less than one year. The call options are typically written at-the-money to out-of-the-money, indicating a conservative approach to managing potential upside potential and downside risk. The funds AUM of $604.30M USD signifies a sizeable presence in the market, allowing for a relatively stable source of income.

From a technical analysis perspective, the funds price is currently at $19.47, with its 20-day SMA at $19.31, indicating a bullish trend. The 50-day SMA at $18.85 and 200-day SMA at $19.21 further reinforce the positive trend. The Average True Range (ATR) of 0.16, equivalent to 0.83%, suggests relatively stable price movements. Given the 52-week high and low of $20.46 and $16.49, respectively, the fund is currently trading near the lower end of its recent range, suggesting potential for growth.

Based on the available technical and fundamental data, a forecast for FTQI could be constructed. With the current price at $19.47 and the 20-day SMA at $19.31, a potential target price could be the 52-week high of $20.46, representing a 5% upside. However, the funds income generation strategy and the overall market conditions will play a significant role in determining its future performance. If the Nasdaq-100 Index remains stable or experiences moderate growth, FTQIs strategy of writing call options could continue to generate steady income, supporting the funds price. Conversely, a significant downturn in the Nasdaq-100 Index could negatively impact the funds performance.