GUNR Butterfly Strategy
GUNR (FlexShares Morningstar Global Upstream Natural Resources Index Fund), in the Financial Services sector, (Asset Management industry), listed on AMEX.
This fund is tailored for investors looking to capitalize on a wide interpretation of global real assets. The FlexShares Morningstar Global Upstream Natural Resources Index Fund strives to mirror the total return, encompassing both capital appreciation and income, of the Morningstar Global Upstream Natural Resources Index, prior to accounting for any charges or expenses.
GUNR (FlexShares Morningstar Global Upstream Natural Resources Index Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $7.37B, a beta of 0.42 versus the broader market, a 52-week range of 39.86-56.35, average daily share volume of 436K, a public-listing history dating back to 2011. These structural characteristics shape how GUNR etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.42 indicates GUNR has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. GUNR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on GUNR?
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.
Current GUNR snapshot
As of June 29, 2026, spot at $49.13, ATM IV 12.70%, IV rank 0.36%, expected move 3.64%. The butterfly on GUNR below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 18-day expiry.
Why this butterfly structure on GUNR specifically: GUNR IV at 12.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a GUNR butterfly, with a market-implied 1-standard-deviation move of approximately 3.64% (roughly $1.79 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GUNR expiries trade a higher absolute premium for lower per-day decay. Position sizing on GUNR should anchor to the underlying notional of $49.13 per share and to the trader's directional view on GUNR etf.
GUNR butterfly setup
The GUNR butterfly below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With GUNR near $49.13, the first option leg uses a $47.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GUNR chain at a 18-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 GUNR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $47.00 | $2.60 |
| Sell 2 | Call | $49.00 | $0.80 |
| Buy 1 | Call | $52.00 | $0.16 |
GUNR butterfly risk and reward
- Net Premium / Debit
- -$116.00
- Max Profit (per contract)
- $72.81
- Max Loss (per contract)
- -$216.00
- Breakeven(s)
- $48.16, $49.84
- Risk / Reward Ratio
- 0.337
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.
GUNR butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on GUNR. 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 | -100.0% | -$116.00 |
| $10.87 | -77.9% | -$116.00 |
| $21.73 | -55.8% | -$116.00 |
| $32.60 | -33.7% | -$116.00 |
| $43.46 | -11.5% | -$116.00 |
| $54.32 | +10.6% | -$216.00 |
| $65.18 | +32.7% | -$216.00 |
| $76.04 | +54.8% | -$216.00 |
| $86.90 | +76.9% | -$216.00 |
| $97.77 | +99.0% | -$216.00 |
When traders use butterfly on GUNR
Butterflies on GUNR are pinning bets - traders use them when they expect GUNR 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.
GUNR thesis for this butterfly
The market-implied 1-standard-deviation range for GUNR extends from approximately $47.34 on the downside to $50.92 on the upside. A GUNR long call butterfly is a pinning play: it pays maximum at the middle strike if GUNR settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current GUNR IV rank near 0.36% 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 GUNR at 12.70%. As a Financial Services name, GUNR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GUNR-specific events.
GUNR 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. GUNR positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GUNR alongside the broader basket even when GUNR-specific fundamentals are unchanged. Always rebuild the position from current GUNR chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on GUNR?
- A butterfly on GUNR is the butterfly strategy applied to GUNR (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 GUNR etf trading near $49.13, the strikes shown on this page are snapped to the nearest listed GUNR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GUNR 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 GUNR butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 12.70%), the computed maximum profit is $72.81 per contract and the computed maximum loss is -$216.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a GUNR butterfly?
- The breakeven for the GUNR butterfly priced on this page is roughly $48.16 and $49.84 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current GUNR market-implied 1-standard-deviation expected move is approximately 3.64%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on GUNR?
- Butterflies on GUNR are pinning bets - traders use them when they expect GUNR 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 GUNR implied volatility affect this butterfly?
- GUNR ATM IV is at 12.70% with IV rank near 0.36%, 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.