UBR Strangle Strategy
UBR (ProShares - Ultra MSCI Brazil Capped), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
The ProShares Ultra MSCI Brazil Capped fund's primary goal is to deliver daily investment returns that are double (2x) the daily performance of the MSCI Brazil 25/50 Index. These results are calculated before any fees or expenses are taken into account.
UBR (ProShares - Ultra MSCI Brazil Capped) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $3.9M, a beta of 1.01 versus the broader market, a 52-week range of 18.09-43.88, average daily share volume of 5K, a public-listing history dating back to 2010. These structural characteristics shape how UBR etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.01 places UBR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. UBR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a strangle on UBR?
A long strangle buys an OTM call and an OTM put at offset strikes, cheaper than a straddle but requiring a larger underlying move to profit since both wings start out-of-the-money.
Current UBR snapshot
As of June 29, 2026, spot at $29.45, ATM IV 66.30%, IV rank 53.85%, expected move 19.01%. The strangle on UBR below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 18-day expiry.
Why this strangle structure on UBR specifically: UBR IV at 66.30% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 19.01% (roughly $5.60 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UBR expiries trade a higher absolute premium for lower per-day decay. Position sizing on UBR should anchor to the underlying notional of $29.45 per share and to the trader's directional view on UBR etf.
UBR strangle setup
The UBR strangle below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With UBR near $29.45, the first option leg uses a $31.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UBR chain at a 18-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 UBR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $31.00 | $1.32 |
| Buy 1 | Put | $28.00 | $1.23 |
UBR strangle risk and reward
- Net Premium / Debit
- -$255.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$255.00
- Breakeven(s)
- $25.45, $33.55
- Risk / Reward Ratio
- Unbounded
Upside max profit is unbounded; downside max profit is bounded at the put strike minus the combined debit (reached at zero). Max loss equals the combined debit times 100 (reached anywhere between the two OTM strikes). Two breakevens at call-strike plus debit and put-strike minus debit.
UBR strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on UBR. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | +$2,544.00 |
| $6.52 | -77.9% | +$1,892.95 |
| $13.03 | -55.8% | +$1,241.91 |
| $19.54 | -33.6% | +$590.86 |
| $26.05 | -11.5% | -$60.18 |
| $32.56 | +10.6% | -$98.77 |
| $39.07 | +32.7% | +$552.27 |
| $45.58 | +54.8% | +$1,203.32 |
| $52.09 | +76.9% | +$1,854.36 |
| $58.60 | +99.0% | +$2,505.41 |
When traders use strangle on UBR
Strangles on UBR are the cheaper cousin of the straddle - traders use them when they want a large directional move but are willing to give up the inner-strike sensitivity in exchange for a lower up-front debit on the UBR chain.
UBR thesis for this strangle
The market-implied 1-standard-deviation range for UBR extends from approximately $23.85 on the downside to $35.05 on the upside. A UBR long strangle is the OTM cousin of the straddle: lower up-front cost but the underlying has to travel further past either OTM strike before the position turns profitable at expiration. Current UBR IV rank near 53.85% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle thesis on UBR should anchor more to the directional view and the expected-move geometry. As a Financial Services name, UBR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UBR-specific events.
UBR strangle positions are structurally neutral / high-volatility (long premium, OTM); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. UBR positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UBR alongside the broader basket even when UBR-specific fundamentals are unchanged. Always rebuild the position from current UBR chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on UBR?
- A strangle on UBR is the strangle strategy applied to UBR (etf). The strategy is structurally neutral / high-volatility (long premium, OTM): A long strangle buys an OTM call and an OTM put at offset strikes, cheaper than a straddle but requiring a larger underlying move to profit since both wings start out-of-the-money. With UBR etf trading near $29.45, the strikes shown on this page are snapped to the nearest listed UBR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UBR strangle max profit and max loss calculated?
- Upside max profit is unbounded; downside max profit is bounded at the put strike minus the combined debit (reached at zero). Max loss equals the combined debit times 100 (reached anywhere between the two OTM strikes). Two breakevens at call-strike plus debit and put-strike minus debit. For the UBR strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 66.30%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$255.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UBR strangle?
- The breakeven for the UBR strangle priced on this page is roughly $25.45 and $33.55 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current UBR market-implied 1-standard-deviation expected move is approximately 19.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on UBR?
- Strangles on UBR are the cheaper cousin of the straddle - traders use them when they want a large directional move but are willing to give up the inner-strike sensitivity in exchange for a lower up-front debit on the UBR chain.
- How does current UBR implied volatility affect this strangle?
- UBR ATM IV is at 66.30% with IV rank near 53.85%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.