UVXY: Profiting From Ultra-High Decay


  • Proshares Ultra VIX Short-Term Futures has an insane amount of decay.
  • That decay dropped the ETF by 50% from the recent highs and the fund is down substantially in the most favorable environment.
  • We look at unique ways to play this ETF.
  • Conservative Income Portfolio members get exclusive access to our real-world portfolio. See all our investments here »
Woman having teeth examined at dentists

PIKSEL/iStock via Getty Images

There are not too many ETFs that we are harshly critical of. Sure, most may not be designed to generate alpha, but they all seem to have a good target audience. ProShares Ultra VIX Short-Term Futures ETF (BATS:UVXY), on

Are you looking for Real Yields which reduce portfolio volatility?

Conservative Income Portfolio targets the best value stocks with the highest margins of safety. The volatility of these investments is further lowered using the best priced options. Our Covered Call Portfolio is designed to reduce volatility while generating 7-9% yields. We focus on being the house and take the opposite side of the gambler.

Learn more about our method & why it might be right for your portfolio.

This article was written by

Trapping Value profile picture
The best way to provide income in today's markets while reducing risks

Conservative Income Portfolio is designed for investors who want reliable income with the lowest volatility.

High Valuations have distorted the investing landscape and investors are poised for exceptionally low forward returns. Using cash secured puts and covered calls to harvest income off value income stocks is the best way forward. We "lock-in" high yields when volatility is high and capture multiple years of dividends in advance to reach the goal of producing 7-9% yields with the lowest volatility.

Preferred Stock Trader is Comanager of Conservative Income Portfolio and shares research and resources with author. He manages our fixed income side looking for opportunistic investments with 12% plus potential returns. 

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments (22)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.