UVXY Short Strangle — 2026-12-04

UVXY (ProShares Ultra VIX Short Term Futures ETF): options flow was balanced/mixed, IV rank 69 (elevated). Gamma is roughly balanced. Structured as a Short Strangle (sell $19P / sell $20C) expiring 2026-12-04 (25 DTE) — balanced flow + very high IV → short strangle. Net credit $472 (undefined risk — size small). Breakevens $14.29 and $24.72.

Underlying: UVXY @ ~$19.47 | 2026-12-04 (25 DTE) | Net credit (entry): ~$472 per spread. Use limit orders at the mid or slightly better.

ENTRY: Sell the $19 put AND the $20 call (both naked) expiring 2026-12-04 (25 DTE) as one strangle at a LIMIT of the mid or better — target credit $472, each short delta ~0.16–0.20. IV rank 69 is elevated — premium is rich, a good backdrop to SELL; any vol contraction adds to the win. UNDEFINED risk on both tails — only in genuinely rich IV, small size. Gamma: dealer gamma is roughly neutral — no pin edge either way; put wall (support) at $20.5; call wall (resistance) at $20. | TAKE PROFIT: Buy the strangle back to LOCK IN gains at ~25–50% of the $472 credit (undefined-risk, so bank it sooner — 25% on a strong move). Also close on TIME: exit around 21 DTE regardless of P&L to sidestep the late-cycle gamma/pin risk near UVXY's short strike(s) — currently 25 DTE, so plan the exit 4 day(s) out. Profit zone $14.29–$24.72. Never carry a naked strangle into expiration. | IF TESTED: Roll the UNTESTED side closer to price for more credit whenever one short is challenged (delta ~0.30) — e.g. if UVXY sells off toward the $19 put, roll the $20 call down to re-collect and lower the breakeven. If a short's loss hits ~$944, roll THAT side out ~7–14 days for a credit; if the move persists, go INVERTED (roll the tested short beyond the other) to keep taking in credit, and/or CONVERT to an iron condor by buying protective wings to cap the runaway tail. Treat a close below the $20.5 put wall as the hard trigger to act (the pin support has failed); Treat a close above the $20 call wall as the hard trigger to act (the resistance magnet has broken). In a negative-gamma regime defend a full step earlier. Undefined-risk structure — keep size small and honor the stop; do not let a naked tested strike run without a defined plan. | MAXIMIZE: Range-bound and both sides decaying? Roll the nearer winning short in toward price to harvest extra premium (a classic strangle "leg-in"), or bank ~50% and redeploy. Extend duration only once most of the credit is captured.