QRMI Butterfly Strategy
QRMI (Global X - Nasdaq 100 Risk Managed Income ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The Global X Nasdaq 100 Risk Managed Income ETF (QRMI) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Nasdaq-100 Monthly Net Credit Collar 95-100 Index.
QRMI (Global X - Nasdaq 100 Risk Managed Income ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $16.2M, a beta of 0.33 versus the broader market, a 52-week range of 14.89-16.25, average daily share volume of 8K, a public-listing history dating back to 2021. These structural characteristics shape how QRMI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.33 indicates QRMI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. QRMI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on QRMI?
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 QRMI snapshot
As of May 15, 2026, spot at $15.59, ATM IV 44.20%, IV rank 19.64%, expected move 12.67%. The butterfly on QRMI 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 QRMI specifically: QRMI IV at 44.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a QRMI butterfly, with a market-implied 1-standard-deviation move of approximately 12.67% (roughly $1.98 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 QRMI expiries trade a higher absolute premium for lower per-day decay. Position sizing on QRMI should anchor to the underlying notional of $15.59 per share and to the trader's directional view on QRMI etf.
QRMI butterfly setup
The QRMI 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 QRMI near $15.59, the first option leg uses a $14.81 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed QRMI 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 QRMI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $14.81 | N/A |
| Sell 2 | Call | $15.59 | N/A |
| Buy 1 | Call | $16.37 | N/A |
QRMI butterfly risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
QRMI butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on QRMI. 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.
When traders use butterfly on QRMI
Butterflies on QRMI are pinning bets - traders use them when they expect QRMI 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.
QRMI thesis for this butterfly
The market-implied 1-standard-deviation range for QRMI extends from approximately $13.61 on the downside to $17.57 on the upside. A QRMI long call butterfly is a pinning play: it pays maximum at the middle strike if QRMI settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current QRMI IV rank near 19.64% 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 QRMI at 44.20%. As a Financial Services name, QRMI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to QRMI-specific events.
QRMI 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. QRMI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move QRMI alongside the broader basket even when QRMI-specific fundamentals are unchanged. Always rebuild the position from current QRMI chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on QRMI?
- A butterfly on QRMI is the butterfly strategy applied to QRMI (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 QRMI etf trading near $15.59, the strikes shown on this page are snapped to the nearest listed QRMI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are QRMI 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 QRMI butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 44.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a QRMI butterfly?
- The breakeven for the QRMI butterfly priced on this page is no defined breakeven on the modeled curve 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 QRMI market-implied 1-standard-deviation expected move is approximately 12.67%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on QRMI?
- Butterflies on QRMI are pinning bets - traders use them when they expect QRMI 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 QRMI implied volatility affect this butterfly?
- QRMI ATM IV is at 44.20% with IV rank near 19.64%, 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.