GraniteShares 2x Long NVDA Daily ETF (NVDL) Covered Calls

The GraniteShares 2x Long NVDA Daily ETF is an actively managed exchange-traded fund that seeks to provide double the daily performance of NVIDIA Corporation common stock. The fund utilizes financial instruments such as swap agreements and options to achieve its 200% daily leverage target. It is designed as a short-term tactical tool for sophisticated traders and investors looking to amplify their exposure to the price movements of a single semiconductor industry leader.

You can sell covered calls on GraniteShares 2x Long 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 NVDL (prices last updated Fri 4:16 PM ET):

GraniteShares 2x Long NVDA Daily ETF (NVDL) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
84.88 +11.40 84.92 85.07 17.1M - 0.0
Covered Calls For GraniteShares 2x Long NVDA Daily ETF (NVDL)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 85 5.00 80.07 6.2% 151%
Mar 20 85 9.65 75.42 12.7% 108%
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Extended Business Description

GraniteShares 2x Long NVDA Daily ETF is a high-conviction, single-stock leveraged investment vehicle. Unlike traditional diversified ETFs, NVDL is engineered to track the daily percentage change of one specific equity, seeking to amplify the performance of NVIDIA. It has become one of the most liquid tools for traders looking to capitalize on volatility within the artificial intelligence and semiconductor sectors.

Core Strategy and Operations

  1. Leveraged Daily Exposure: The fund aims for daily investment results, before fees and expenses, of 200% of the daily performance of NVIDIA. To achieve this, the fund enters into financial derivative instruments, primarily swap agreements, with major financial institutions. It may also hold the underlying stock directly or use standardized options to fine-tune its exposure levels.
  2. Daily Reset Mechanism: NVDL is designed to reset its leverage daily. This means that its performance over periods longer than a single day may differ significantly from twice the performance of the underlying stock due to the effects of compounding. In volatile or "choppy" markets, this daily rebalancing can lead to volatility decay, making the fund more suitable for short-term tactical plays rather than long-term buy-and-hold strategies.
  3. Operational Structure: The fund is actively managed and carries an expense ratio of approximately 1.05%. Because it relies on synthetic replication through swaps, it carries counterparty risk, though it provides the convenience of leveraged exposure without the need for a margin account or personal derivative management.

Competitive Landscape

NVDL is the leading bullish leveraged product for NVIDIA exposure, but it competes in a growing niche of single-stock ETFs. Its primary rivals include the T-Rex 2X Long NVIDIA Daily Target ETF and the Direxion Daily NVDA Bull 2X Shares. For traders looking for the opposite side of the trade, GraniteShares also offers the GraniteShares 2x Short NVDA Daily ETF. Investors seeking broader, yet still leveraged, semiconductor exposure often look to the Direxion Daily Semiconductor Bull 3X Shares. It also competes for the attention of income-seeking NVIDIA bulls with the YieldMax NVDA Option Income Strategy ETF.

Strategic Outlook and Innovation

Management focuses on maintaining tight tracking and high liquidity to serve as a primary vehicle for "hot sauce" trading in the tech sector. As the demand for AI hardware infrastructure continues to drive intense market interest, the fund is positioned as a high-octane tool for capturing intraday and short-term trends. The advisor monitors counterparty strength and market volatility to ensure the synthetic forward positions remain efficient. While the fund offers extreme upside potential during steady uptrends, management continuously warns that it is a non-diversified vehicle where a significant decline in the underlying stock can lead to a rapid and substantial loss of principal. It remains a staple for active participants who have a high conviction in the near-term trajectory of the AI hardware landscape.