ProShares Nasdaq-100 Dynamic Buffer ETF(NASDAQ:QB)

QB is a passively managed fund that aims to provide exposure to the Nasdaq-100 Index while utilizing an options strategy that seeks to deliver capped gains and a buffer against the first 1%-5% of Nasdaq-100s loss each day. Particularly, the fund takes a long position in the Nasdaq-100 Index along with three different Nasdaq-100 Index options that have one day to expiration. First, the fund purchases and sells put options to measure the performance of approximately at-the-money and out-of-the-money Nasdaq-100 Index put options, respectively. These put options create and limit the size of the buffer. Then, the fund writes out-of-the-money call options to create a cap on the upside participation in the Nasdaq-100 Index returns. Both the cap and the buffer vary each day based on expected volatility. The fund will not directly write or purchase options but instead will obtain exposure to the indexs options component through swap agreements. The index rebalances and reconstitutes daily.