UVXY Forecast + Trading Strategies


Bullish Case: The implied volatility for UVXY is currently elevated and predicted to spike due to potential geopolitical tensions or economic data surprises. This environment could lead to a significant uptrend, potentially driving UVXY upwards as investors seek volatility protection.


Bearish Case: The current market environment suggests continued stability, with most investors anticipating a decline in volatility. The high contango in the term structure may lead to prolonged downward pressure on UVXY prices, making bullish trades risky.


Potential Outcomes:

1. Market shock spikes volatility (20%).

2. UVXY decline persists due to stability (60%).

3. Geopolitical or economic events lead to moderate volatility spikes (15%).

4. Financial recovery stabilizes markets (5%).


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July 25, 2024


ProShares Ultra VIX Short-Term Futures Forecast

UVXY      ProShares Ultra VIX Short-Term Futures











Correlated Assets

Assets that tend to move strongly with UVXY



VFC Forecast + Options Trading Strategies   VFC  VF (0.69)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.57)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.36)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.8)



Uncorrelated Assets

Assets with little price relationship to UVXY



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.36)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.57)


VFC Forecast + Options Trading Strategies   VFC  VF (0.69)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.8)



Anticorrelated Assets

Assets that tend to move strongly against UVXY



VFC Forecast + Options Trading Strategies   VFC  VF (0.69)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.57)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.36)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.8)





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