OZEM Butterfly Strategy
OZEM (Roundhill Investments - GLP-1 & Weight Loss ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
Roundhill believes that weight loss drugs, including GLP-1 agonists, represent one of the most revolutionary advancements in the global pharmaceuticals industry. The Roundhill GLP-1 & Weight Loss ETF (“OZEM”) is the world’s first GLP-1 ETF. OZEM is an actively-managed ETF.
OZEM (Roundhill Investments - GLP-1 & Weight Loss ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $40.9M, a beta of 0.44 versus the broader market, a 52-week range of 23.09-37.15, average daily share volume of 21K, a public-listing history dating back to 2024. These structural characteristics shape how OZEM etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.44 indicates OZEM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. OZEM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on OZEM?
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 OZEM snapshot
As of May 15, 2026, spot at $30.97, ATM IV 26.40%, IV rank 1.97%, expected move 7.57%. The butterfly on OZEM 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 34-day expiry.
Why this butterfly structure on OZEM specifically: OZEM IV at 26.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a OZEM butterfly, with a market-implied 1-standard-deviation move of approximately 7.57% (roughly $2.34 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated OZEM expiries trade a higher absolute premium for lower per-day decay. Position sizing on OZEM should anchor to the underlying notional of $30.97 per share and to the trader's directional view on OZEM etf.
OZEM butterfly setup
The OZEM 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 OZEM near $30.97, the first option leg uses a $29.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OZEM chain at a 34-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 OZEM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $29.00 | $2.58 |
| Sell 2 | Call | $31.00 | $1.15 |
| Buy 1 | Call | $33.00 | $0.25 |
OZEM butterfly risk and reward
- Net Premium / Debit
- -$52.50
- Max Profit (per contract)
- $134.44
- Max Loss (per contract)
- -$52.50
- Breakeven(s)
- $29.53, $32.48
- Risk / Reward Ratio
- 2.561
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.
OZEM butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on OZEM. 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% | -$52.50 |
| $6.86 | -77.9% | -$52.50 |
| $13.70 | -55.8% | -$52.50 |
| $20.55 | -33.6% | -$52.50 |
| $27.40 | -11.5% | -$52.50 |
| $34.24 | +10.6% | -$52.50 |
| $41.09 | +32.7% | -$52.50 |
| $47.94 | +54.8% | -$52.50 |
| $54.78 | +76.9% | -$52.50 |
| $61.63 | +99.0% | -$52.50 |
When traders use butterfly on OZEM
Butterflies on OZEM are pinning bets - traders use them when they expect OZEM 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.
OZEM thesis for this butterfly
The market-implied 1-standard-deviation range for OZEM extends from approximately $28.63 on the downside to $33.31 on the upside. A OZEM long call butterfly is a pinning play: it pays maximum at the middle strike if OZEM settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current OZEM IV rank near 1.97% 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 OZEM at 26.40%. As a Financial Services name, OZEM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OZEM-specific events.
OZEM 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. OZEM positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OZEM alongside the broader basket even when OZEM-specific fundamentals are unchanged. Always rebuild the position from current OZEM chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on OZEM?
- A butterfly on OZEM is the butterfly strategy applied to OZEM (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 OZEM etf trading near $30.97, the strikes shown on this page are snapped to the nearest listed OZEM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OZEM 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 OZEM butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 26.40%), the computed maximum profit is $134.44 per contract and the computed maximum loss is -$52.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a OZEM butterfly?
- The breakeven for the OZEM butterfly priced on this page is roughly $29.53 and $32.48 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 OZEM market-implied 1-standard-deviation expected move is approximately 7.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on OZEM?
- Butterflies on OZEM are pinning bets - traders use them when they expect OZEM 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 OZEM implied volatility affect this butterfly?
- OZEM ATM IV is at 26.40% with IV rank near 1.97%, 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.