URNJ Butterfly Strategy
URNJ (Sprott Junior Uranium Miners ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
Under normal market conditions, this fund allocates a minimum of 80% of its total assets to securities within its benchmark index. This index is specifically constructed to track the financial performance of companies that obtain at least half of their revenue or maintain at least half of their assets from activities related to uranium. These activities include its extraction, exploration, project development, production, the collection of uranium royalties, or its distribution. The index typically holds between 30 and 40 underlying companies. It is important to note that this fund operates as a non-diversified investment.
URNJ (Sprott Junior Uranium Miners ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $234.5M, a beta of 1.05 versus the broader market, a 52-week range of 19.45-40.81, average daily share volume of 288K, a public-listing history dating back to 2023. These structural characteristics shape how URNJ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.05 places URNJ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. URNJ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on URNJ?
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.
URNJ snapshot
As of August 14, 2026, spot at $24.45, ATM IV 51.60%, IV rank 1.83%, expected move 14.79%. The butterfly on URNJ 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 35-day expiry.
Why this butterfly structure on URNJ specifically: URNJ IV at 51.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a URNJ butterfly, with a market-implied 1-standard-deviation move of approximately 14.79% (roughly $3.62 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated URNJ expiries trade a higher absolute premium for lower per-day decay. Position sizing on URNJ should anchor to the underlying notional of $24.45 per share and to the trader's directional view on URNJ etf.
URNJ butterfly setup
The URNJ 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 URNJ at $24.45 on that close, the first option leg uses a $23.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed URNJ chain at a 35-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 URNJ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $23.00 | $2.43 |
| Sell 2 | Call | $24.00 | $1.85 |
| Buy 1 | Call | $26.00 | $0.90 |
URNJ butterfly risk and reward
- Net Premium / Debit
- +$37.50
- Max Profit (per contract)
- $128.85
- Max Loss (per contract)
- -$62.50
- Breakeven(s)
- $25.38
- Risk / Reward Ratio
- 2.062
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.
URNJ butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on URNJ. 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% | +$37.50 |
| $5.41 | -77.9% | +$37.50 |
| $10.82 | -55.7% | +$37.50 |
| $16.22 | -33.6% | +$37.50 |
| $21.63 | -11.5% | +$37.50 |
| $27.03 | +10.6% | -$62.50 |
| $32.44 | +32.7% | -$62.50 |
| $37.84 | +54.8% | -$62.50 |
| $43.25 | +76.9% | -$62.50 |
| $48.65 | +99.0% | -$62.50 |
When traders use butterfly on URNJ
Butterflies on URNJ are pinning bets - traders use them when they expect URNJ 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.
URNJ thesis for this butterfly
The market-implied 1-standard-deviation range for URNJ extends from approximately $20.83 on the downside to $28.07 on the upside. A URNJ long call butterfly is a pinning play: it pays maximum at the middle strike if URNJ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current URNJ IV rank near 1.83% 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 URNJ at 51.60%. As a Financial Services name, URNJ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to URNJ-specific events.
URNJ 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. URNJ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move URNJ alongside the broader basket even when URNJ-specific fundamentals are unchanged. Always rebuild the position from current URNJ chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on URNJ?
- A butterfly on URNJ is the butterfly strategy applied to URNJ (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 URNJ etf at $24.45 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed URNJ chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are URNJ 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 URNJ butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 51.60%), the computed maximum profit is $128.85 per contract and the computed maximum loss is -$62.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a URNJ butterfly?
- The breakeven for the URNJ butterfly priced on this page is roughly $25.38 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 URNJ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.79%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on URNJ?
- Butterflies on URNJ are pinning bets - traders use them when they expect URNJ 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 URNJ implied volatility affect this butterfly?
- URNJ ATM IV is at 51.60% with IV rank near 1.83%, 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.