UVXY And SVXY: Trading Volatility In A Turbulent Market

Michael Del Monte6.72K FollowersFollow5ShareSavePlay(11min)CommentsSummaryProShares Ultra VIX Short-Term Futures ETF and ProShares Short VIX Short-Term Futures ETF offer tactical tools for trading volatility spikes and normalization.I recommend Hold ratings on both UVXY and SVXY, emphasizing their use for short-term, daily trading due to compounding and NAV decay risks.With S&P 500 expected to remain flat in 2026, volatility will likely be driven by exogenous shocks such as geopolitical events and energy price fluctuations.Trading SVXY during volatility normalization can be appealing following large spikes in the underlying Index; patiently waiting until the Index reaches the normalized rate may protect from losses in UVXY. peshkov/iStock via Getty Images The ProShares Ultra VIX Short-Term Futures ETF (UVXY) is a leveraged exchange-traded fund designed to provide investors with amplified exposure to the daily performance of the S&P 500 VIX Short-Term Futures Index. With theThis article was written byMichael Del Monte6.72K FollowersFollowMonte Independent Investment Research: Michael Del Monte is a buy-side equity analyst with expertise in the technology, energy, industrials, and materials sectors. Prior to working in the investment management industry, Michael spent over a decade in professional services working across industries that include O&G, OFS, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary.Analyst’s 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. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.