T-Rex 2X Long NVIDIA Daily Target ETF (NVDX) Covered Calls

The T-Rex 2X Long NVIDIA Daily Target ETF is an actively managed exchange-traded fund that seeks to provide 200% of the daily performance of NVIDIA Corporation. The fund utilizes financial instruments, including swap agreements and other derivatives, to magnify the daily price movements of its underlying stock. It is intended as a high-conviction trading tool for sophisticated investors who wish to amplify their short-term bullish outlook on a primary leader in the AI and semiconductor space.

You can sell covered calls on T-Rex 2X Long NVIDIA Daily Target 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 NVDX (prices last updated Fri 4:16 PM ET):

T-Rex 2X Long NVIDIA Daily Target ETF (NVDX) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
16.46 +2.23 16.45 16.46 19.7M - 0.0
Covered Calls For T-Rex 2X Long NVIDIA Daily Target ETF (NVDX)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 16.43 0.95 15.51 5.9% 144%
Mar 20 16.43 1.75 14.71 11.7% 99.3%
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Extended Business Description

T-Rex 2X Long NVIDIA Daily Target ETF is a specialized leveraged investment vehicle designed for active traders seeking to maximize their exposure to one of the most significant companies in the global technology sector. As part of the "T-Rex" series of single-stock ETFs, NVDX is engineered to provide a 2x multiple on the daily price action of NVIDIA, making it a powerful instrument for capturing rapid momentum in the artificial intelligence and data center markets.

Core Strategy and Operations

  1. Leveraged Daily Objective: The fund seeks to achieve daily investment results, before fees and expenses, that correspond to 200% of the daily performance of the common stock of NVIDIA Corporation. To reach this target, the fund primarily utilizes over-the-counter swap agreements with major financial institutions. It may also hold the underlying equity or use other standardized derivatives to maintain its precise leverage ratio.
  2. Daily Rebalancing and Compounding: NVDX resets its exposure every trading day. Because of this daily reset, the fund’s performance over periods longer than a single day is the result of each day’s returns compounded. In periods of high volatility, this can lead to "volatility decay," where the fund's value may decline even if the underlying stock remains flat over time. Consequently, it is not intended as a long-term "buy and hold" investment.
  3. Fee Structure and Liquidity: The fund carries a gross expense ratio of 1.05%. Despite its higher cost compared to passive ETFs, it offers high liquidity for traders who require a vehicle that can be easily entered and exited throughout the trading session to manage tactical positions or hedge broader tech portfolios.

Competitive Landscape

NVDX competes in the rapidly expanding single-stock leveraged ETF market. Its most direct competitor is the GraniteShares 2x Long NVDA Daily ETF, which shares a nearly identical 2x bullish objective. It also faces competition from the Direxion Daily NVDA Bull 2X Shares. For investors looking for broader semiconductor leverage, the Direxion Daily Semiconductor Bull 3X Shares is a common alternative. On the income side, bulls often compare NVDX to the YieldMax NVDA Option Income Strategy ETF, which prioritizes yield over pure capital appreciation.

Strategic Outlook and Innovation

The management team focuses on maintaining institutional-grade execution of its daily rebalancing to minimize tracking error. As the semiconductor industry continues to be the primary engine for advancements in generative AI and autonomous systems, NVDX is positioned as a high-octane tactical tool for investors who want to capitalize on the high implied volatility of the sector. The fund serves as a primary vehicle for "volatility harvesting" and momentum trading, provided the investor has the risk tolerance for significant daily price swings. While it offers the potential for outsized gains during sustained rallies, the fund remains a non-diversified product where a sharp decline in the underlying stock can result in a total loss of investment capital.