GMEU Butterfly Strategy
GMEU (ETF Opportunities Trust - T-Rex 2X Long GME Daily Target ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
GMEU is designed for making bullish bets on the stock price of GameStop Corp. through swap agreements. The objective is to obtain daily leveraged exposure equivalent to 200% of the fund's net assets. To maintain this exposure, daily rebalancing is performed to make adjustments in response to GMEs daily price movements. As a geared product, the fund is intended as a short-term tactical tool, rather than as a long-term investment vehicle. As a result, returns may deviate from the expected 2x if held for longer than a single day due to compounding. This strategy is high-risk and does not include a defensive position as part of its overall process.
GMEU (ETF Opportunities Trust - T-Rex 2X Long GME Daily Target ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $27.3M, a beta of 0.40 versus the broader market, a 52-week range of 4.97-18.98, average daily share volume of 440K, a public-listing history dating back to 2025. These structural characteristics shape how GMEU etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.40 indicates GMEU has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a butterfly on GMEU?
A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration.
GMEU snapshot
As of September 29, 2026, spot at $8.32, ATM IV 96.30%, IV rank 19.09%, expected move 27.61%. The butterfly on GMEU below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 80-day expiry.
Why this butterfly structure on GMEU specifically: GMEU IV at 96.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a GMEU butterfly, with a market-implied 1-standard-deviation move of approximately 27.61% (roughly $2.30 on the underlying). The 80-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GMEU expiries trade a higher absolute premium for lower per-day decay. Position sizing on GMEU should anchor to the underlying notional of $8.32 per share and to the trader's directional view on GMEU etf.
GMEU butterfly setup
The GMEU butterfly below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With GMEU at $8.32 on that close, the first option leg uses a $8.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GMEU chain at a 80-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 GMEU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $8.00 | $1.60 |
| Sell 2 | Call | $8.00 | $1.60 |
| Buy 1 | Call | $9.00 | $1.28 |
GMEU butterfly risk and reward
- Net Premium / Debit
- +$32.50
- Max Profit (per contract)
- $32.50
- Max Loss (per contract)
- -$67.50
- Breakeven(s)
- $8.33
- Risk / Reward Ratio
- 0.481
Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit.
GMEU butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on GMEU. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -99.9% | +$32.50 |
| $1.85 | -77.8% | +$32.50 |
| $3.69 | -55.7% | +$32.50 |
| $5.53 | -33.6% | +$32.50 |
| $7.36 | -11.5% | +$32.50 |
| $9.20 | +10.6% | -$67.50 |
| $11.04 | +32.7% | -$67.50 |
| $12.88 | +54.8% | -$67.50 |
| $14.72 | +76.9% | -$67.50 |
| $16.56 | +99.0% | -$67.50 |
When traders use butterfly on GMEU
Butterflies on GMEU are pinning bets - traders use them when they expect GMEU to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
GMEU thesis for this butterfly
The market-implied 1-standard-deviation range for GMEU extends from approximately $6.02 on the downside to $10.62 on the upside. A GMEU long call butterfly is a pinning play: it pays maximum at the middle strike if GMEU settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current GMEU IV rank near 19.09% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on GMEU at 96.30%. As a Financial Services name, GMEU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GMEU-specific events.
GMEU butterfly positions are structurally neutral / pin (limited-risk, limited-reward); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. GMEU positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GMEU alongside the broader basket even when GMEU-specific fundamentals are unchanged. Always rebuild the position from current GMEU chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on GMEU?
- A butterfly on GMEU is the butterfly strategy applied to GMEU (etf). The strategy is structurally neutral / pin (limited-risk, limited-reward): A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration. With GMEU etf at $8.32 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed GMEU chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are GMEU butterfly max profit and max loss calculated?
- Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit. For the GMEU butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 96.30%), the computed maximum profit is $32.50 per contract and the computed maximum loss is -$67.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a GMEU butterfly?
- The breakeven for the GMEU butterfly priced on this page is roughly $8.33 at expiration, derived from the September 29, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The GMEU market-implied 1-standard-deviation expected move in the same options snapshot is approximately 27.61%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on GMEU?
- Butterflies on GMEU are pinning bets - traders use them when they expect GMEU to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
- How does current GMEU implied volatility affect this butterfly?
- GMEU ATM IV is at 96.30% with IV rank near 19.09%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.