(PJUN) Innovator SP500 Power - Ratings and Ratios

The Innovator S&P 500 Power Buffer ETF (PJUN) is designed to provide investors with a defined outcome, specifically focusing on capital preservation and growth within a specified range. The fund primarily invests in Flexible EXchange® (FLEX) Options that reference the SPDR® S&P 500® ETF Trust (SPY), which tracks the S&P 500 Index. These FLEX Options are highly customizable exchange-traded contracts, offering unique terms that can be tailored to meet specific investment objectives. While FLEX Options are guaranteed for settlement by the Options Clearing Corporation (OCC), they are not without risks, including counterparty risk related to the OCC and potential liquidity challenges compared to more traditional exchange-traded options.

As a non-diversified fund, PJUN may concentrate its investments in a smaller number of securities, which can increase volatility. The funds strategy involves a combination of FLEX Options to create a power buffer, aiming to limit downside exposure while allowing for upside participation in the S&P 500. This approach is particularly appealing to investors seeking risk-managed exposure to the U.S. large-cap equity market. The funds structure is designed to provide a balance between growth potential and protection against market declines.

Based on the provided data, here is a 3-month forecast for PJUN:

3-Month Forecast:

Near-Term (Next 30 Days): The fund is expected to trade within a narrow range, with support near $37.50 and resistance at $38.50, based on the SMA 20 and SMA 50 levels. The average volume of 36,359 shares suggests moderate liquidity, which may limit sharp price movements.

Medium-Term (30-60 Days): If the S&P 500 maintains its current upward trajectory, PJUN may see a slight increase in price, potentially breaking above $38.50. The ATR of 0.16 indicates low volatility, which could support a steady ascent.

Longer-Term (60-90 Days): The funds price is likely to stabilize around $38.00, supported by the SMA 200 at $36.66. The AUM of $569.02M suggests a stable investor base, which could contribute to consistent trading activity.