UVXY Covered Call Strategy

Market Data

ProShares Ultra VIX Short-Term Futures Key Data

Symbol

UVXY

Name

ProShares Ultra VIX Short-Term Futures

Type

Leveraged ETF

Sector

Leveraged ETF

Industry

Volatility 1.5x

Exchange

NASDAQ / NYSE

Live Price

Market Cap

—

52-Week High

—

52-Week Low

—

Strategy

Covered Calls

Access

Free Trial

About

About UVXY

UVXY provides 1.5x leveraged exposure to short-term VIX futures. It rises during market fear and volatility spikes but decays quickly in calm markets.

Strategy

Covered calls on leveraged ETFs like UVXY are an advanced strategy. Because UVXY experiences accelerated decay and high daily volatility, selling covered calls can help offset the time-decay costs while holding the position. Short-dated calls (1-7 DTE) typically offer the best premium-to-risk ratio on leveraged instruments.

Leveraged ETFs decay over time due to daily rebalancing. Covered calls can help offset this cost, but understand the underlying mechanics before trading.

How It Works

How to Run a Covered Call on UVXY

Own 100 Shares

You must own at least 100 shares of UVXY to sell 1 covered call contract. Each options contract covers exactly 100 shares.

Choose Strike and Expiry

Select a call strike above the current UVXY price (OTM) and an expiry date. 30–45 DTE monthly cycles are most popular for income generation.

Sell the Call

Sell 1 call contract to collect the premium immediately into your account. This income is yours regardless of what UVXY does next.

Manage at Expiry

If UVXY stays below your strike, the option expires worthless and you keep the premium. If it rises above, shares get called away at the strike.

FAQ

Frequently Asked Questions

Can I sell covered calls on UVXY?

Yes, UVXY has listed options. You need to own 100 shares per contract. Use our screener to find the best strikes and expiries based on your goals.

What strike should I choose for UVXY covered calls?

Most income traders choose strikes 2–10% above the current UVXY price (OTM), balancing premium income with allowing some upside. The ideal strike depends on your income vs. upside tradeoff.

What is the best expiry for UVXY covered calls?

Monthly options (30–45 DTE) have the best time-decay characteristics for covered call sellers. Weekly options on UVXY offer more flexibility but require more active management.

How much premium can I collect on UVXY covered calls?

Premium depends on UVXY's implied volatility (IV), your chosen strike distance, and days to expiry. Higher IV means more premium. Use CoveredCalls.live to see real-time premiums and annualized returns for UVXY.

What happens if UVXY rises above my strike?

Your shares get called away at the strike price. You keep the premium collected plus any gain from your cost basis to the strike. You can then buy shares back and repeat the strategy.

Screen the Best UVXY Covered Calls Right Now

Our screener scans UVXY options every few minutes and ranks setups by annualized return, downside protection, and bid-ask spread quality.

Start Free Trial →