GRANITESHARES 2X SHORT AMD DAILY ETF AMSS Stock Analysis

About GRANITESHARES 2X SHORT AMD DAILY ETF

TheFund is an actively managed exchange traded fund that attempts to replicate 2x the inverse (-200%) daily percentage change of the UnderlyingStock by entering into financial instruments such as swaps and options on the Underlying Stock. At the end of each trading day, the notionalexposure against the Underlying Stock obtained through the combination of these instruments will be approximately -200% of the Fund’snet asset value. The Fund aims to generate the inverse daily performance of the Underlying Stock for a single day. A “single day”is defined as being calculated “from the close of regular trading on one trading day to the close on the next trading day.” The Fund will aim to primarily obtain its notionalexposure against the Underlying Stock through swap agreements. In case the Fund faces restriction in increasing its swap notional exposure,it may use option contracts on the Underlying Stock. Swaps: The Fund may enter into one or more swap agreementswith major financial institutions for a specified period ranging from a day to more than one year whereby the Fund and the financialinstitution will agree to exchange the return (or differentials in rates of return) earned or realized on the Underlying Stock. The grossreturn to be exchanged or “swapped” between the parties is calculated with respect to a “notional amount,” e.g.,the return on or change in value of a particular dollar amount representing the Underlying Stock. The Fund has adopted a policy to have at least80% of its investment exposure to financial instruments with economic characteristics that should have 2 times the inverse performanceof the Underlying Stock. The Fund is expected to post between 40% and 60%of its assets as collateral under the swap agreements. The Fund expects to use Cowen Financial ProductsLLC as its initial swap counterparty. Cowen Financial Products LLC is a conditionally registered swap dealer and is required to filecertain reports from time to time with the Securities and Exchange Commission. Cowen Financial Products LLC is an indirect subsidiaryof Toronto Dominion Bank, a Canadian company whose shares are listed for trade on the New York Stock Exchange (NYSE) under the symbol“TD.” Debts of Cowen Financial Products LLC as it may relate to the Fund are not guaranteed by its parent company. Options: Depending on market conditions, market liquidityand operational constraints, the Fund may either buy deep in-the-money put option contracts, or simultaneously buy an at-the-money putoption contract and sell an at-the-money call option contract (a strategy generally referred to as synthetic forward). All option contractsbought and sold will be against the Underlying Stock. The Fund will pay the premium for each put option contract bought and receive thepremium for each call option sold. The Fund’s participation in potential changes in the price of the Underlying Stock is basedon the price of the Underlying Stock at the time the Fund buys the put and sells the call option contracts, the strike price of the call(put) option contract and the Underlying Stock price at the time of the contract’s expiration. The maturity of the option contractbought and sold may vary from 1-week to 1-month. As part of the Fund’s strategy, the Fundmay buy a combination of standardized exchange-traded and FLexible EXchange® (“FLEX”) call and put options contractsthat are based on the value of the price returns of the Underlying Stock. The Fund will only buy and sell options contracts that arelisted for trading on regulated U.S. exchanges. Traditional exchange-traded options contracts have standardized terms, such as the type(call or put), the reference asset, the strike price and expiration date. Exchange-listed options contracts are guaranteed for settlementby the Options Clearing Corporation (“OCC”). FLEX Options are a type of exchange-listed options contract with uniquely customizableterms that allow investors to customize key terms like type, strike price and…