6 Reasons Selling UVXY Calls Is Not Worth the Risk

6 Reasons Selling UVXY Calls Is Not Worth the Risk In the world of trading and investing, UVXY (ProShares Ultra VIX Short-Term Futures ETF) is known for its high volatility and complex behavior. Selling UVXY call options can appear enticing due to the potential for collecting premiums, but it comes with significant risks and drawbacks….

UVXY Correlation to the Spot VIX as Well as to Peer ETPs

This article examines the correlation between the ProShares Ultra VIX Short-Term Futures ETF (UVXY) and the Spot VIX, revealing a strong positive correlation of 0.87 on average. UVXY responds significantly to volatility spikes but can experience decay in stable periods, making it a suitable short-term hedge rather than a long-term investment.

The Appeal of UVXY

“This article shows how traders can use UVXY’s leverage, which amplifies gains by 1.5 times the daily performance of the S&P 500 VIX Short-Term Futures Index, as a potent tool for profiting from market volatility. By navigating these fluctuations adeptly, traders can capitalize on UVXY’s dynamics to achieve rapid returns during periods of economic uncertainty or geopolitical turmoil.”

Understanding UVXY Decay: How Long-Term Holding Affects Performance and Risk

Understanding UVXY Decay: How Long-Term Holding Affects Performance and Risk

This article analyzes the decay rate of the ProShares Ultra VIX Short-Term Futures ETF (UVXY), highlighting how its performance deteriorates over time due to factors like daily rebalancing and contango. It provides insights into the risks of holding UVXY long-term and offers strategies for mitigating potential losses.