UGL Long Put Strategy
UGL (ProShares - Ultra Gold), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
ProShares Ultra Gold is structured to provide daily investment returns that are double (2x) the daily performance of the Bloomberg Gold SubindexSM. This objective is pursued before factoring in any associated fees or operational expenses.
UGL (ProShares - Ultra Gold) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $764.2M, a beta of 0.57 versus the broader market, a 52-week range of 34.35-90.4, average daily share volume of 2.2M, a public-listing history dating back to 2008. These structural characteristics shape how UGL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.57 indicates UGL has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a long put on UGL?
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.
UGL snapshot
As of August 14, 2026, spot at $51.37, ATM IV 43.70%, IV rank 26.67%, expected move 12.53%. The long put on UGL below is built from the August 14, 2026 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 UGL specifically: UGL IV at 43.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a UGL long put, with a market-implied 1-standard-deviation move of approximately 12.53% (roughly $6.44 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 UGL expiries trade a higher absolute premium for lower per-day decay. Position sizing on UGL should anchor to the underlying notional of $51.37 per share and to the trader's directional view on UGL etf.
UGL long put setup
The UGL long put below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With UGL at $51.37 on that close, the first option leg uses a $51.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UGL 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 UGL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $51.00 | $2.43 |
UGL long put risk and reward
- Net Premium / Debit
- -$242.50
- Max Profit (per contract)
- $4,856.50
- Max Loss (per contract)
- -$242.50
- Breakeven(s)
- $48.58
- Risk / Reward Ratio
- 20.027
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
UGL long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on UGL. 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% | +$4,856.50 |
| $11.37 | -77.9% | +$3,720.79 |
| $22.72 | -55.8% | +$2,585.08 |
| $34.08 | -33.7% | +$1,449.37 |
| $45.44 | -11.5% | +$313.67 |
| $56.80 | +10.6% | -$242.50 |
| $68.15 | +32.7% | -$242.50 |
| $79.51 | +54.8% | -$242.50 |
| $90.87 | +76.9% | -$242.50 |
| $102.22 | +99.0% | -$242.50 |
When traders use long put on UGL
Long puts on UGL hedge an existing long UGL etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying UGL exposure being hedged.
UGL thesis for this long put
The market-implied 1-standard-deviation range for UGL extends from approximately $44.93 on the downside to $57.81 on the upside. A UGL long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long UGL position with one put per 100 shares held. Current UGL IV rank near 26.67% 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 UGL at 43.70%. As a Financial Services name, UGL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UGL-specific events.
UGL 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. UGL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UGL alongside the broader basket even when UGL-specific fundamentals are unchanged. Long-premium structures like a long put on UGL 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 UGL chain quotes before placing a trade.
Frequently asked questions
- What is a long put on UGL?
- A long put on UGL is the long put strategy applied to UGL (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 UGL etf at $51.37 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed UGL chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are UGL 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 UGL long put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 43.70%), the computed maximum profit is $4,856.50 per contract and the computed maximum loss is -$242.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UGL long put?
- The breakeven for the UGL long put priced on this page is roughly $48.58 at expiration, derived from the August 14, 2026 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 UGL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.53%; 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 UGL?
- Long puts on UGL hedge an existing long UGL etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying UGL exposure being hedged.
- How does current UGL implied volatility affect this long put?
- UGL ATM IV is at 43.70% with IV rank near 26.67%, 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.