UX Butterfly Strategy
UX (Roundhill Investments - Uranium ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
Roundhill considers uranium to be an indispensable resource, vital for satisfying the escalating global demand for consistent electricity, a need primarily driven by the expanding adoption of nuclear power. The Roundhill Uranium ETF, known by its ticker “UX,” stands out as the pioneering U.S.-listed exchange-traded fund that provides investment exposure to the market price of physical uranium (U₃O₈).
UX (Roundhill Investments - Uranium ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.5M, a beta of 0.71 versus the broader market, a 52-week range of 24.37-38.72, average daily share volume of 4K, a public-listing history dating back to 2025. These structural characteristics shape how UX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.71 places UX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. UX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on UX?
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 UX snapshot
As of June 29, 2026, spot at $27.60, ATM IV 17.60%, IV rank 0.00%, expected move 5.05%. The butterfly on UX 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 81-day expiry.
Why this butterfly structure on UX specifically: UX IV at 17.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a UX butterfly, with a market-implied 1-standard-deviation move of approximately 5.05% (roughly $1.39 on the underlying). The 81-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UX expiries trade a higher absolute premium for lower per-day decay. Position sizing on UX should anchor to the underlying notional of $27.60 per share and to the trader's directional view on UX etf.
UX butterfly setup
The UX 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 UX near $27.60, the first option leg uses a $26.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UX chain at a 81-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 UX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $26.00 | $2.75 |
| Sell 2 | Call | $28.00 | $1.20 |
| Buy 1 | Call | $29.00 | $1.28 |
UX butterfly risk and reward
- Net Premium / Debit
- -$162.50
- Max Profit (per contract)
- $35.40
- Max Loss (per contract)
- -$162.50
- Breakeven(s)
- $27.63
- Risk / Reward Ratio
- 0.218
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.
UX butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on UX. 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% | -$162.50 |
| $6.11 | -77.9% | -$162.50 |
| $12.21 | -55.8% | -$162.50 |
| $18.31 | -33.6% | -$162.50 |
| $24.42 | -11.5% | -$162.50 |
| $30.52 | +10.6% | -$62.50 |
| $36.62 | +32.7% | -$62.50 |
| $42.72 | +54.8% | -$62.50 |
| $48.82 | +76.9% | -$62.50 |
| $54.92 | +99.0% | -$62.50 |
When traders use butterfly on UX
Butterflies on UX are pinning bets - traders use them when they expect UX 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.
UX thesis for this butterfly
The market-implied 1-standard-deviation range for UX extends from approximately $26.21 on the downside to $28.99 on the upside. A UX long call butterfly is a pinning play: it pays maximum at the middle strike if UX settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current UX IV rank near 0.00% 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 UX at 17.60%. As a Financial Services name, UX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UX-specific events.
UX 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. UX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UX alongside the broader basket even when UX-specific fundamentals are unchanged. Always rebuild the position from current UX chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on UX?
- A butterfly on UX is the butterfly strategy applied to UX (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 UX etf trading near $27.60, the strikes shown on this page are snapped to the nearest listed UX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UX 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 UX butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 17.60%), the computed maximum profit is $35.40 per contract and the computed maximum loss is -$162.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UX butterfly?
- The breakeven for the UX butterfly priced on this page is roughly $27.63 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 UX market-implied 1-standard-deviation expected move is approximately 5.05%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on UX?
- Butterflies on UX are pinning bets - traders use them when they expect UX 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 UX implied volatility affect this butterfly?
- UX ATM IV is at 17.60% with IV rank near 0.00%, 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.