UVXY Iron Condor Strategy
UVXY (ProShares - Ultra VIX Short-Term Futures ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on CBOE.
ProShares Ultra VIX Short-Term Futures ETF seeks daily investment results, before fees and expenses, that correspond to one and one-half times (1.5x) the daily performance of the S&P 500 VIX Short-Term Futures Index.
UVXY (ProShares - Ultra VIX Short-Term Futures ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $219.4M, a beta of -3.31 versus the broader market, a 52-week range of 33.95-131, average daily share volume of 8.1M, a public-listing history dating back to 2011. These structural characteristics shape how UVXY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -3.31 indicates UVXY 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 iron condor on UVXY?
An iron condor sells a call spread and a put spread at strikes outside spot, collecting net premium that is kept if the underlying stays inside the inner short strikes.
Current UVXY snapshot
As of May 15, 2026, spot at $35.89, ATM IV 85.55%, IV rank 13.10%, expected move 24.53%. The iron condor on UVXY 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 28-day expiry.
Why this iron condor structure on UVXY specifically: UVXY IV at 85.55% is on the cheap side of its 1-year range, which means a premium-selling UVXY iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 24.53% (roughly $8.80 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UVXY expiries trade a higher absolute premium for lower per-day decay. Position sizing on UVXY should anchor to the underlying notional of $35.89 per share and to the trader's directional view on UVXY etf.
UVXY iron condor setup
The UVXY iron condor below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With UVXY near $35.89, the first option leg uses a $37.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UVXY chain at a 28-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 UVXY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $37.50 | $2.84 |
| Buy 1 | Call | $39.50 | $2.45 |
| Sell 1 | Put | $34.00 | $1.79 |
| Buy 1 | Put | $32.00 | $1.10 |
UVXY iron condor risk and reward
- Net Premium / Debit
- +$108.50
- Max Profit (per contract)
- $108.50
- Max Loss (per contract)
- -$91.50
- Breakeven(s)
- $32.92, $38.59
- Risk / Reward Ratio
- 1.186
Max profit equals the net credit times 100 inside the inner strikes; max loss equals wing width minus credit times 100. Two breakevens at inner strikes plus and minus the credit.
UVXY iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on UVXY. 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% | -$91.50 |
| $7.94 | -77.9% | -$91.50 |
| $15.88 | -55.8% | -$91.50 |
| $23.81 | -33.6% | -$91.50 |
| $31.75 | -11.5% | -$91.50 |
| $39.68 | +10.6% | -$91.50 |
| $47.62 | +32.7% | -$91.50 |
| $55.55 | +54.8% | -$91.50 |
| $63.48 | +76.9% | -$91.50 |
| $71.42 | +99.0% | -$91.50 |
When traders use iron condor on UVXY
Iron condors on UVXY are a delta-neutral premium-collection structure that profits if UVXY etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
UVXY thesis for this iron condor
The market-implied 1-standard-deviation range for UVXY extends from approximately $27.09 on the downside to $44.69 on the upside. A UVXY iron condor is a delta-neutral premium-collection structure that pays off when UVXY stays inside the inner short strikes through expiration; the wing width should reflect the trader's tolerance for the maximum loss scenario where the underlying breaches an outer strike. Current UVXY IV rank near 13.10% 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 UVXY at 85.55%. As a Financial Services name, UVXY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UVXY-specific events.
UVXY iron condor positions are structurally neutral / range-bound; 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. UVXY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UVXY alongside the broader basket even when UVXY-specific fundamentals are unchanged. Short-premium structures like a iron condor on UVXY carry tail risk when realized volatility exceeds the implied move; review historical UVXY earnings reactions and macro stress periods before sizing. Always rebuild the position from current UVXY chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on UVXY?
- A iron condor on UVXY is the iron condor strategy applied to UVXY (etf). The strategy is structurally neutral / range-bound: An iron condor sells a call spread and a put spread at strikes outside spot, collecting net premium that is kept if the underlying stays inside the inner short strikes. With UVXY etf trading near $35.89, the strikes shown on this page are snapped to the nearest listed UVXY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UVXY iron condor max profit and max loss calculated?
- Max profit equals the net credit times 100 inside the inner strikes; max loss equals wing width minus credit times 100. Two breakevens at inner strikes plus and minus the credit. For the UVXY iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 85.55%), the computed maximum profit is $108.50 per contract and the computed maximum loss is -$91.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UVXY iron condor?
- The breakeven for the UVXY iron condor priced on this page is roughly $32.92 and $38.59 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 UVXY market-implied 1-standard-deviation expected move is approximately 24.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a iron condor on UVXY?
- Iron condors on UVXY are a delta-neutral premium-collection structure that profits if UVXY etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current UVXY implied volatility affect this iron condor?
- UVXY ATM IV is at 85.55% with IV rank near 13.10%, 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.