GraniteShares 2x Short NVDA Daily ETF (NVD) Covered Calls

The GraniteShares 2x Short NVDA Daily ETF is an actively managed exchange-traded fund that seeks to provide twice the inverse of the daily performance of NVIDIA Corporation common stock. The fund utilizes financial derivatives, primarily swap agreements, to achieve a -200% daily return target. It is designed as a tactical tool for sophisticated traders and investors looking to profit from a decline, or hedge against a pullback, in the price of this semiconductor industry leader.

You can sell covered calls on GraniteShares 2x Short NVDA Daily ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for NVD (prices last updated Fri 4:16 PM ET):

GraniteShares 2x Short NVDA Daily ETF (NVD) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
6.99 -1.28 6.98 6.99 68.5M - 0.0
Covered Calls For GraniteShares 2x Short NVDA Daily ETF (NVD)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 7 0.10 6.89 1.5% 36.5%
Mar 20 7 0.70 6.29 11.1% 94.2%
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Extended Business Description

GraniteShares 2x Short NVDA Daily ETF is a high-conviction inverse investment vehicle. Unlike traditional "long" ETFs, NVD is engineered to profit when the stock price of NVIDIA falls. It serves as one of the most aggressive tools available for traders seeking to capitalize on downward volatility or to hedge a concentrated portfolio against a correction in the artificial intelligence and semiconductor sectors.

Core Strategy and Operations

  1. Inverse Leveraged Daily Objective: The fund seeks to provide daily investment results, before fees and expenses, of 200% of the inverse (or -200%) of the daily performance of NVIDIA. This means if the underlying stock falls 1% in a single day, the fund aims to rise 2%. To achieve this, the fund enters into synthetic derivative contracts, primarily swap agreements, with major financial institutions.
  2. Daily Reset and Volatility Decay: NVD resets its leverage target at the end of every trading session. Because of this daily rebalancing, the fund performance over periods longer than one day may deviate significantly from the -200% target due to compounding. In a highly volatile market where the underlying stock moves up and down frequently, this "volatility decay" can erode the fund value even if the stock is down over a longer period.
  3. Operational Structure: The fund is actively managed and carries an expense ratio of approximately 1.15%. Because it relies on swaps, it carries counterparty risk. It is intended for short-term tactical use and is not a suitable "buy and hold" candidate for most long-term investors.

Competitive Landscape

NVD is a primary tool for those betting against the AI hardware boom. Its most direct competitors are other inverse products like the T-Rex 2X Inverse NVIDIA Daily Target ETF and the Direxion Daily NVDA Bear 1X Shares. For traders looking for broader semiconductor sector weakness, the Direxion Daily Semiconductor Bear 3X Shares is a common alternative. It is also used as a hedge by investors who may be long on yield-focused products like the YieldMax NVDA Option Income Strategy ETF but fear a near-term price correction.

Strategic Outlook and Innovation

Management focuses on maintaining precise tracking of the inverse daily return to serve the needs of professional traders and institutional hedgers. As the semiconductor industry enters more mature phases of the AI spending cycle, NVD is positioned as a vehicle for navigating "mean reversion" or profit-taking phases. The fund is non-diversified and carries extreme risk; a 50% increase in the underlying stock in a single day would theoretically result in a total loss of the fund value. Consequently, it is utilized by experienced participants who actively monitor their exposure and understand the mechanics of inverse leveraged compounding in high-velocity tech markets.