UVIX And UVXY: The Equity Volatility Premium Might Be Unwound Soon

2025-07-31 02:22:19 ET

The ProShares Ultra VIX Short-Term Futures ETF (UVXY) is revised today, and coverage is initiated on the 2x Long VIX Futures ETF (UVIX) amid a key shift in equity volatility. We covered UVXY in June, stating that we were tactically bullish going into July. Unfortunately, the volatility premium has broadened ever since, leading to losses in long-VIX vehicles such as UVXY. Despite UVXY's recent drawdown, we think the volatility premium might unwind in due course and, as a result, raise front and second month VIX futures. As such, we decided to reengage with UVXY. Moreover, we decided to include UVIX into the mix to broaden our term structure outlook....

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