2x Long VIX Futures ETF (UVIX) Covered Calls

The 2x Long VIX Futures ETF (UVIX) is an ultra-leveraged exchange-traded fund designed to provide daily investment results corresponding to twice (2x) the performance of the Long VIX Futures Index. Managed by Volatility Shares, the fund serves as a high-octane tactical tool for sophisticated traders to capitalize on sudden spikes in market fear or to execute tail-risk hedging strategies during periods of significant equity market stress.

You can sell covered calls on 2x Long VIX Futures ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for UVIX (prices last updated Tue 4:16 PM ET):

2x Long VIX Futures ETF (UVIX) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
6.15 -0.40 6.15 6.16 39.7M - 0.0
Covered Calls For 2x Long VIX Futures ETF (UVIX)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Mar 20 6 0.93 5.23 14.7% 215%
Apr 17 6 1.29 4.87 23.2% 160%
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2x Long VIX Futures ETF (UVIX) is a leveraged exchange-traded product that tracks the Long VIX Futures Index. The fund’s objective is to provide daily investment results, before fees and expenses, that correspond to 2x (200%) of the daily performance of its benchmark. This index measures the daily performance of a theoretical portfolio of first- and second-month VIX futures contracts, which are rolled daily to maintain a constant one-month maturity. Because it targets 2x leverage, UVIX is significantly more volatile than 1x or 1.5x volatility products, making it a specialized instrument for institutional and professional traders.

In early 2026, UVIX continues to be a primary vehicle for aggressive volatility positioning. Following a 1-for-10 reverse stock split in January 2025, the fund adjusted its share price to counteract the persistent value erosion caused by "roll decay" in the VIX futures market. By February 2026, the fund maintains high liquidity on the Cboe BZX Exchange, with heavy participation from retail traders and hedge funds. As a Commodity Pool, UVIX issues K-1 tax forms and is subject to specific regulatory oversight. The fund is strictly intended for short-term use; due to daily rebalancing and the effects of contango—where longer-term futures are more expensive than near-term ones—the fund's long-term value tends to decline toward zero over extended periods of market calm.

Competitive Landscape

The competitive landscape for UVIX consists of other volatility-linked exchange-traded products with varying leverage profiles. Primary rivals that offer active options markets include ProShares Ultra VIX Short-Term Futures ETF (UVXY) and iPath Series B S&P 500 VIX Short-Term Futures ETN. While UVXY currently provides 1.5x leverage and VXX provides 1x exposure, UVIX distinguishes itself as the more aggressive 2x alternative.

Other notable competitors in the volatility ecosystem include ProShares Short VIX Short-Term Futures ETF, which provides inverse exposure (-0.5x). UVIX maintains a competitive edge through its high implied volatility and a robust options chain that is frequently used for gamma scalping and complex spread strategies. Its options market is among the most active in the leveraged ETF space, providing ample opportunity for covered call and cash-secured put writing, though the high risk of gap-ups and gap-downs requires stringent risk management.

Strategic Outlook

Strategic focus in early 2026 remains on managing Tracking Error and optimizing the execution of the daily 4:00 PM rebalance. By early 2026, Volatility Shares has integrated advanced algorithmic execution to minimize the "rebalance slip" that occurs when the fund must buy futures into a rising VIX or sell into a falling one. This optimization is critical for maintaining the 2x leverage target during the final 15 minutes of the trading day, when liquidity can become fragmented during "volatility events."

The long-term outlook for UVIX is tied to the evolving structure of the "volatility-as-an-asset-class" market. Management is prioritizing investor education regarding the path-dependency of leveraged returns, emphasizing that the fund is a tactical tool for the "macro-regime" shifts expected throughout 2026. As market participants increasingly use 0DTE (zero days to expiration) options to express short-term views, UVIX serves as a foundational "macro" hedge that captures broader shifts in the S&P 500 volatility surface. Despite the structural headwind of contango, UVIX remains the go-to instrument for capturing the "volatility explosion" associated with black-swan events and systemic market shocks.