First Trust BuyWrite Income ETF (FTHI)

First Trust BuyWrite Income ETF is trading at $24.23, down 0.51% on the session. The 50 day average sits at $23.81 and the 200 day at $n/a, which puts the stock in a mixed technical position. RSI is at 65.8, which reads as strong, and MACD is bullish crossover. Volume is below average.

The nearest support is around $23.83 with resistance near $24.36, so that band frames the current range. Average daily movement is roughly $0.21, or about 0.9% of the share price, which is what any stop placement has to allow for. The overall health score of 76 out of 100 combines a trend score of 68, momentum of 78 and a risk score of 84.

Under normal market conditions, the fund will pursue its investment objectives by investing primarily in equity securities listed on U.S. exchanges and by utilizing an “option strategy” consisting of writing (selling) U.S. exchange-traded call options on the Standard & Poor’s 500® Index. The fund will employ an option strategy in which it will write U.S. exchange-traded call options on the S&P 500 Index in order to seek additional cash flow in the form of premiums on the options that may be distributed to shareholders on a monthly basis.