Tradr 1.5X Short NVDA Daily ETF (NVDS) Covered Calls

The T-Rex 2X Inverse NVIDIA Daily Target ETF is an actively managed exchange-traded fund that seeks to provide 200% of the inverse of the daily performance of NVIDIA Corporation common stock. The fund utilizes financial instruments, primarily swap agreements, to achieve its -200% daily return objective. It is designed as a sophisticated tactical tool for traders looking to profit from daily price declines or to hedge against short-term pullbacks in the semiconductor industry.

You can sell covered calls on Tradr 1.5X 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 NVDS (prices last updated Fri 4:16 PM ET):

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Extended Business Description

T-Rex 2X Inverse NVIDIA Daily Target ETF is a high-conviction trading vehicle designed for investors with a strong bearish outlook on the daily price action of NVIDIA. As one of the most aggressive inverse products in the single-stock ETF market, NVDS allows traders to potentially double the percentage gains of a downward move in the semiconductor giant without the complexities of maintaining a traditional short position.

Core Strategy and Operations

1. Magnified Inverse Exposure: The fund seeks daily investment results, before fees and expenses, of -200% of the performance of NVIDIA Corporation. For example, if the underlying stock falls 1% in a single day, the fund is designed to increase by 2%. To achieve this, the fund primarily engages in swap agreements with major financial institutions to gain synthetic inverse exposure.
2. Daily Compounding and Reset: NVDS rebalances its portfolio at the end of every trading day to maintain its -200% target. Because of this daily reset mechanism, the fund's performance over periods longer than a single day can vary significantly from the simple inverse multiple. In volatile markets, "volatility decay" can negatively impact returns even if the underlying stock price declines over a long duration, making it a tool strictly for short-term tactical use.
3. Fee Structure: The fund is actively managed and carries a gross expense ratio of approximately 1.05%. This fee accounts for the high transaction costs associated with daily rebalancing and the expenses of entering into complex derivative contracts.

Competitive Landscape

NVDS competes in the rapidly growing niche of inverse single-stock ETFs. Its most direct rival is the GraniteShares 2x Short NVDA Daily ETF, which also targets a -200% daily return. Other competitors include the Direxion Daily NVDA Bear 1X Shares, which offers a less aggressive inverse profile. For those seeking broader sector-wide bearish exposure, the Direxion Daily Semiconductor Bear 3X Shares is a frequent alternative. It is often used by traders to hedge long positions in tech-heavy funds or as a tactical counter-play to bullish products like the GraniteShares 2x Long NVDA Daily ETF.

Strategic Outlook and Innovation

The management team focuses on providing precise execution to minimize tracking error against the inverse of the daily price movement. As the artificial intelligence sector experiences periods of extreme sentiment and valuation "overstretch," NVDS is positioned as a primary liquidity vehicle for those anticipating mean-reversion or profit-taking cycles. The fund is non-diversified and inherently risky; a single-day rally of 50% in the underlying stock could theoretically result in a total loss of capital. It remains a staple for professional participants who actively manage their risk and seek to navigate the "bumpy" path of the semiconductor hardware cycle through strategic short-term positioning.

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