UBT Long Put Strategy
UBT (ProShares - Ultra 20+ Year Treasury), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
This investment product's daily objective is to achieve results that, prior to the deduction of fees and expenses, match two times (2x) the daily performance observed in the ICE U.S. Treasury 20+ Year Bond Index.
UBT (ProShares - Ultra 20+ Year Treasury) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $56.7M, a beta of 4.79 versus the broader market, a 52-week range of 14.68-18.48, average daily share volume of 53K, a public-listing history dating back to 2010. These structural characteristics shape how UBT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 4.79 indicates UBT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. UBT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on UBT?
A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration.
UBT snapshot
As of August 14, 2026, spot at $14.79, ATM IV 19.60%, IV rank 3.79%, expected move 5.62%. The long put on UBT below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this long put structure on UBT specifically: UBT IV at 19.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a UBT long put, with a market-implied 1-standard-deviation move of approximately 5.62% (roughly $0.83 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UBT expiries trade a higher absolute premium for lower per-day decay. Position sizing on UBT should anchor to the underlying notional of $14.79 per share and to the trader's directional view on UBT etf.
UBT long put setup
The UBT long put below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With UBT at $14.79 on that close, the first option leg uses a $14.79 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UBT chain at a 35-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 UBT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $14.79 | N/A |
UBT long put risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
UBT long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on UBT. 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.
When traders use long put on UBT
Long puts on UBT hedge an existing long UBT etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying UBT exposure being hedged.
UBT thesis for this long put
The market-implied 1-standard-deviation range for UBT extends from approximately $13.96 on the downside to $15.62 on the upside. A UBT long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long UBT position with one put per 100 shares held. Current UBT IV rank near 3.79% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on UBT at 19.60%. As a Financial Services name, UBT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UBT-specific events.
UBT long put positions are structurally bearish; 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. UBT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UBT alongside the broader basket even when UBT-specific fundamentals are unchanged. Long-premium structures like a long put on UBT are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current UBT chain quotes before placing a trade.
Frequently asked questions
- What is a long put on UBT?
- A long put on UBT is the long put strategy applied to UBT (etf). The strategy is structurally bearish: A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration. With UBT etf at $14.79 on the most recent close, the strikes shown on this page are snapped to the nearest listed UBT chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are UBT long put max profit and max loss calculated?
- Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium. For the UBT long put priced from the end-of-day chain at a 30-day expiry (ATM IV 19.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UBT long put?
- The breakeven for the UBT long put priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The UBT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.62%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a long put on UBT?
- Long puts on UBT hedge an existing long UBT etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying UBT exposure being hedged.
- How does current UBT implied volatility affect this long put?
- UBT ATM IV is at 19.60% with IV rank near 3.79%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.