DailyDelta made its entry to the ETF space with the launch of the DailyDelta Q100 Upside Option Strategy ETF (QUP) and the DailyDelta Q100 Downside Option Strategy ETF (QDWN) on the NYSE Arca today. 

QDWN’s objective is to profit from daily drops in the value of the Nasdaq 100 Index, which tracks the top 100 nonfinancial companies listed on the Nasdaq. The goal is to capture the downside of the Nasdaq-100’s value on a daily basis while keeping any losses to a maximum of 10% of the fund’s net value in a single day.

To achieve this, the ETF invests in cash-settled index put options. These are contracts that pay out in cash instead of the actual stocks. The fund uses these options to bet against the Nasdaq-100, profiting when the index falls.

The put options held by the fund typically have a short-term expiration — sometimes as brief as one trading day. To balance the risk, QDWN holds about 90% of its funds in short-term U.S. Treasury securities.

See More: Why Options Strategies Remain Popular in 2024

On the other hand, QUP aims to benefit from the daily increase in the value of the Nasdaq-100 and improve upon the index’s upside performance. The fund also works to limit daily losses to 10% or less of its value by investing in cash-settled call options.

Both funds are advised by Kelly Intelligence. Each has an expense ratio  of 1.35% 

In an increasingly volatile market environment, the need for strategies that can navigate and profit from daily fluctuations remains high. According to a recent filing, the brand has similar ETFs in registration. The funds will be tied to the performance of the Russell 2000 Index and the S&P 500 Index.

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