URA Butterfly Strategy
URA (Global X - Uranium ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Global X Uranium ETF, identified by the symbol URA, aims to replicate the overall performance of the Solactive Global Uranium & Nuclear Components Total Return Index. This objective includes tracking both the price appreciation and income generated by the index's constituents, measured before any of the ETF's operational fees and expenses are deducted.
URA (Global X - Uranium ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $4.51B, a beta of 1.41 versus the broader market, a 52-week range of 35.64-62.28, average daily share volume of 3.7M, a public-listing history dating back to 2010. These structural characteristics shape how URA etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.41 indicates URA has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. URA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on URA?
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.
URA snapshot
As of August 14, 2026, spot at $45.05, ATM IV 43.70%, IV rank 27.62%, expected move 12.53%. The butterfly on URA below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.
Why this butterfly structure on URA specifically: URA IV at 43.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a URA butterfly, with a market-implied 1-standard-deviation move of approximately 12.53% (roughly $5.64 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated URA expiries trade a higher absolute premium for lower per-day decay. Position sizing on URA should anchor to the underlying notional of $45.05 per share and to the trader's directional view on URA etf.
URA butterfly setup
The URA butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With URA at $45.05 on that close, the first option leg uses a $43.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed URA chain at a 28-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 URA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $43.00 | $3.30 |
| Sell 2 | Call | $45.00 | $2.28 |
| Buy 1 | Call | $47.00 | $1.48 |
URA butterfly risk and reward
- Net Premium / Debit
- -$22.50
- Max Profit (per contract)
- $160.36
- Max Loss (per contract)
- -$22.50
- Breakeven(s)
- $43.23, $46.81
- Risk / Reward Ratio
- 7.127
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.
URA butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on URA. 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% | -$22.50 |
| $9.97 | -77.9% | -$22.50 |
| $19.93 | -55.8% | -$22.50 |
| $29.89 | -33.7% | -$22.50 |
| $39.85 | -11.5% | -$22.50 |
| $49.81 | +10.6% | -$22.50 |
| $59.77 | +32.7% | -$22.50 |
| $69.73 | +54.8% | -$22.50 |
| $79.69 | +76.9% | -$22.50 |
| $89.65 | +99.0% | -$22.50 |
When traders use butterfly on URA
Butterflies on URA are pinning bets - traders use them when they expect URA 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.
URA thesis for this butterfly
The market-implied 1-standard-deviation range for URA extends from approximately $39.41 on the downside to $50.69 on the upside. A URA long call butterfly is a pinning play: it pays maximum at the middle strike if URA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current URA IV rank near 27.62% 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 URA at 43.70%. As a Financial Services name, URA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to URA-specific events.
URA 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. URA positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move URA alongside the broader basket even when URA-specific fundamentals are unchanged. Always rebuild the position from current URA chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on URA?
- A butterfly on URA is the butterfly strategy applied to URA (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 URA etf at $45.05 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed URA chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are URA 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 URA butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 43.70%), the computed maximum profit is $160.36 per contract and the computed maximum loss is -$22.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a URA butterfly?
- The breakeven for the URA butterfly priced on this page is roughly $43.23 and $46.81 at expiration, derived from the August 14, 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 URA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on URA?
- Butterflies on URA are pinning bets - traders use them when they expect URA 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 URA implied volatility affect this butterfly?
- URA ATM IV is at 43.70% with IV rank near 27.62%, 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.