(KHPI) Kensington Hedged Premium - Ratings and Ratios

The Kensington Hedged Premium Income ETF (BATS:KHPI) employs a strategy mirroring the MerQube Hedged Premium Income Index (MQKHPI). This index is fully invested in the Vanguard S&P 500 ETF (VOO), simultaneously selling 1-month call options and buying 3-month put options on the SPDR S&P 500 ETF (SPY). The strategy aims to generate income through covered call spreads while providing downside protection via put spreads, maintaining exposure to large-cap U.S. equities. As a non-diversified fund, it may concentrate holdings, potentially increasing risk and reward.

Technically, KHPI shows a last price of $25.05, with a 20-day average volume of 94,533, indicating moderate liquidity. The SMA 20 at $25.33, SMA 50 at $25.19, and SMA 200 at $24.79 suggest a bullish trend. The ATR of 0.21 reflects low volatility, indicating stable price movements.

Fundamentally, KHPI manages $91.34M in assets, signaling modest investor interest. This AUM level suggests it is established but not overly large, potentially offering a balance between stability and agility in strategy execution.

Over the next three months, KHPI is expected to maintain a stable price range due to low ATR. The bullish SMA trend may support slight upward movement, potentially reaching $25.50 to $26.00. The funds income strategy should continue to attract yield-focused investors, supporting its appeal in various market conditions.