Innovator ETFs Trust Innovator Hedged TSLA Strategy ETF(AMEX:TSLH)

TSLH utilizes a call option spread strategy via FLEX options to provide capped gains on the Tesla stock and a maximum loss of 10% over a 3-month period. It provides a floor against Tesla losses by investing in US T-bills with a 3-month weighted average maturity, should the options expire worthless. The fund seeks to allocate 10% of the portfolio in options and invests the remainder in T-bills. The upside cap and downside floor fluctuate daily based on the performance of the underlying stock and T-bills. The issuer publishes effective interim levels for the floor and cap, daily on its website. The defined outcome can only be achieved when shares are purchased on the first day and held until the end of the period. The defined outcome return does not include the expense ratio. TSLHs use of FLEX options opens investors to counterparty risk. The fund also takes on added volatility due to a lack of diversification. Investors should conduct their stock research before initiating a position and trade with conviction.