(PMAY) Innovator SP500 Power - Ratings and Ratios

The Innovator S&P 500 Power Buffer ETF - May (BATS:PMAY) is a defined outcome ETF that employs a unique investment strategy to provide investors with exposure to the S&P 500 while incorporating downside protection. The fund invests at least 80% of its net assets in FLEX Options, which are customizable exchange-traded options contracts that allow for tailored exposure to the underlying ETF. These options are designed to provide a specific outcome over a defined period, typically offering a buffer against losses in exchange for a cap on potential gains. The ETF is non-diversified, focusing primarily on the S&P 500, and is structured to appeal to risk-averse investors seeking predictable outcomes.

From a technical standpoint, PMAY has shown stability in recent trading sessions, with its 20-day SMA (36.41) slightly above the 50-day SMA (36.20), indicating a modest upward trend. The 200-day SMA (35.08) suggests longer-term bullish momentum. The Average True Range (ATR) of 0.12 reflects low volatility, which is consistent with the funds risk-reducing strategy. The average volume of 22,812 shares over the past 20 days highlights moderate liquidity, while the last price of 36.23 indicates current market valuation.

Over the next three months, PMAY is expected to maintain its defensive positioning, with the S&P 500 likely trading in a range-bound manner due to macroeconomic uncertainties. The funds use of FLEX Options will continue to provide a buffer against potential declines, though upside participation may be capped. Technically, the 20-day and 50-day SMAs are expected to converge, signaling a period of consolidation. The ATR is projected to remain low, reflecting the ETFs focus on stability. With an AUM of $520.52 million, PMAY has sufficient scale to maintain liquidity and execute its strategy effectively. Overall, PMAY is well-positioned to deliver on its defined outcome objectives, offering investors a balanced risk-return profile in a volatile market environment.