UFOX Butterfly Strategy
UFOX (Defiance Space and Connective Tech ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The U.S. Global GO GOLD and Precious Metal Miners ETF (UFOX) provides investors access to companies involved in the production of precious metals. The fund focuses on companies engaged in active mining or those holding royalty interests. It also maintains a strategic allocation to physical gold.
UFOX (Defiance Space and Connective Tech ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $731.8M, a beta of 1.58 versus the broader market, a 52-week range of 75.71-106.7199, average daily share volume of 40K, a public-listing history dating back to 2019. These structural characteristics shape how UFOX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.58 indicates UFOX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. UFOX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on UFOX?
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.
UFOX snapshot
As of September 30, 2026, spot at $85.31, ATM IV 45.50%, IV rank 100.00%, expected move 13.04%. The butterfly on UFOX below is built from the September 30, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 16-day expiry.
Why this butterfly structure on UFOX specifically: UFOX IV at 45.50% is rich versus its 1-year range, which makes a premium-buying UFOX butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 13.04% (roughly $11.13 on the underlying). The 16-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UFOX expiries trade a higher absolute premium for lower per-day decay. Position sizing on UFOX should anchor to the underlying notional of $85.31 per share and to the trader's directional view on UFOX etf.
UFOX butterfly setup
The UFOX butterfly below is built from the September 30, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With UFOX at $85.31 on that close, the first option leg uses a $81.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UFOX chain at a 16-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 UFOX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $81.00 | $4.55 |
| Sell 2 | Call | $85.00 | $2.25 |
| Buy 1 | Call | $90.00 | $0.95 |
UFOX butterfly risk and reward
- Net Premium / Debit
- -$100.00
- Max Profit (per contract)
- $288.63
- Max Loss (per contract)
- -$200.00
- Breakeven(s)
- $82.00, $88.00
- Risk / Reward Ratio
- 1.443
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.
UFOX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on UFOX. 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% | -$100.00 |
| $18.87 | -77.9% | -$100.00 |
| $37.73 | -55.8% | -$100.00 |
| $56.59 | -33.7% | -$100.00 |
| $75.46 | -11.6% | -$100.00 |
| $94.32 | +10.6% | -$200.00 |
| $113.18 | +32.7% | -$200.00 |
| $132.04 | +54.8% | -$200.00 |
| $150.90 | +76.9% | -$200.00 |
| $169.76 | +99.0% | -$200.00 |
When traders use butterfly on UFOX
Butterflies on UFOX are pinning bets - traders use them when they expect UFOX 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.
UFOX thesis for this butterfly
The market-implied 1-standard-deviation range for UFOX extends from approximately $74.18 on the downside to $96.44 on the upside. A UFOX long call butterfly is a pinning play: it pays maximum at the middle strike if UFOX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current UFOX IV rank near 100.00% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on UFOX at 45.50%. As a Financial Services name, UFOX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UFOX-specific events.
UFOX 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. UFOX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UFOX alongside the broader basket even when UFOX-specific fundamentals are unchanged. Always rebuild the position from current UFOX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on UFOX?
- A butterfly on UFOX is the butterfly strategy applied to UFOX (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 UFOX etf at $85.31 on the September 30, 2026 close, the strikes shown on this page are snapped to the nearest listed UFOX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are UFOX 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 UFOX butterfly priced from the September 30, 2026 end-of-day chain at a 30-day expiry (ATM IV 45.50%), the computed maximum profit is $288.63 per contract and the computed maximum loss is -$200.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UFOX butterfly?
- The breakeven for the UFOX butterfly priced on this page is roughly $82.00 and $88.00 at expiration, derived from the September 30, 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 UFOX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.04%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on UFOX?
- Butterflies on UFOX are pinning bets - traders use them when they expect UFOX 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 UFOX implied volatility affect this butterfly?
- UFOX ATM IV is at 45.50% with IV rank near 100.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.