OCTH
Innovator Premium Income 20 Barrier ETF - October
📎 Investment Objective
The Innovator Premium Income 20 Barrier ETF seeks to provide investors with monthly income and downside protection through a rules-based options strategy.
Overview
ETF tracking Innovator Premium Income 20 Barrier ETF - October
Performance
Price Chart
Investment Summary
📎 Investment Objective
The Innovator Premium Income 20 Barrier ETF seeks to provide investors with monthly income and downside protection through a rules-based options strategy.
🎯 Investment Strategy
The ETF writes (sells) monthly call options on the S&P 500 Index to generate income, while also purchasing put options to provide a buffer against the first 20% of losses in the S&P 500 Index. This strategy aims to generate monthly income and limit downside risk.
✨ Key Features
- Writes monthly call options on the S&P 500 Index to generate income
- Purchases put options to provide a 20% buffer against losses in the S&P 500 Index
- Targets a monthly distribution of income from the options strategy
- Actively managed options-based approach to provide downside protection
⚠️ Primary Risks
- Equity market risk: The ETF's performance is tied to the S&P 500 Index, and it will be subject to the same market risks as the underlying index
- Options-related risks: The options-based strategy exposes the fund to risks associated with the use of derivatives, including potential losses greater than the amount invested
- Interest rate risk: Changes in interest rates can affect the pricing and value of the options held by the fund
- Liquidity risk: The ETF may have difficulty buying or selling certain securities, which could affect its ability to meet redemptions
👤 Best For
This ETF may be suitable for investors seeking a monthly income stream and downside protection in their equity allocation, particularly those with a moderate risk tolerance who are willing to accept the risks associated with an options-based strategy.