ORR Bear Put Spread Strategy
ORR (Militia Long/Short Equity ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The Militia Long/Short Equity ETF, identified by the symbol ORR, is an actively managed investment vehicle designed to achieve capital appreciation. It employs a dual strategy, taking both long and short positions in equities. For its long-term holdings, the fund primarily focuses on stocks in developed markets that are either deemed undervalued or possess substantial growth potential. ORR has the flexibility to commit capital exceeding 100% of its net asset value to these long positions, typically up to a maximum of 150%. Conversely, its short selling strategy concentrates on U.S.-listed companies and exchange-traded funds whose valuations are anticipated to decline, often driven by unfavorable future cash flow projections. The fund can allocate up to 100% of its portfolio to short exposures and may utilize instruments like inverse or leveraged ETFs within this segment.
ORR (Militia Long/Short Equity ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $35.1M, a beta of 0.05 versus the broader market, a 52-week range of 28.76-39.39, average daily share volume of 164K, a public-listing history dating back to 2007. These structural characteristics shape how ORR etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.05 indicates ORR has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a bear put spread on ORR?
A bear put spread buys an at-the-money put and sells an out-of-the-money put at a lower strike for defined risk and defined reward bounded by the strike width.
Current ORR snapshot
As of June 26, 2026, spot at $36.58, ATM IV 9.70%, expected move 2.78%. The bear put spread on ORR 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 18-day expiry.
Why this bear put spread structure on ORR specifically: IV rank is unavailable in the current snapshot, so regime-based timing for ORR is inferred from ATM IV at 9.70% alone, with a market-implied 1-standard-deviation move of approximately 2.78% (roughly $1.02 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ORR expiries trade a higher absolute premium for lower per-day decay. Position sizing on ORR should anchor to the underlying notional of $36.58 per share and to the trader's directional view on ORR etf.
ORR bear put spread setup
The ORR bear put spread below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With ORR near $36.58, the first option leg uses a $37.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ORR chain at a 18-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 ORR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $37.00 | $1.50 |
| Sell 1 | Put | $35.00 | $0.64 |
ORR bear put spread risk and reward
- Net Premium / Debit
- -$86.00
- Max Profit (per contract)
- $114.00
- Max Loss (per contract)
- -$86.00
- Breakeven(s)
- $36.14
- Risk / Reward Ratio
- 1.326
Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-put strike minus net debit.
ORR bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on ORR. 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% | +$114.00 |
| $8.10 | -77.9% | +$114.00 |
| $16.18 | -55.8% | +$114.00 |
| $24.27 | -33.7% | +$114.00 |
| $32.36 | -11.5% | +$114.00 |
| $40.44 | +10.6% | -$86.00 |
| $48.53 | +32.7% | -$86.00 |
| $56.62 | +54.8% | -$86.00 |
| $64.71 | +76.9% | -$86.00 |
| $72.79 | +99.0% | -$86.00 |
When traders use bear put spread on ORR
Bear put spreads on ORR reduce the cost of a bearish ORR etf position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
ORR thesis for this bear put spread
The market-implied 1-standard-deviation range for ORR extends from approximately $35.56 on the downside to $37.60 on the upside. A ORR bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on ORR, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. As a Financial Services name, ORR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ORR-specific events.
ORR bear put spread positions are structurally moderately bearish; 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. ORR positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ORR alongside the broader basket even when ORR-specific fundamentals are unchanged. Long-premium structures like a bear put spread on ORR are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current ORR chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on ORR?
- A bear put spread on ORR is the bear put spread strategy applied to ORR (etf). The strategy is structurally moderately bearish: A bear put spread buys an at-the-money put and sells an out-of-the-money put at a lower strike for defined risk and defined reward bounded by the strike width. With ORR etf trading near $36.58, the strikes shown on this page are snapped to the nearest listed ORR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ORR bear put spread max profit and max loss calculated?
- Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-put strike minus net debit. For the ORR bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 9.70%), the computed maximum profit is $114.00 per contract and the computed maximum loss is -$86.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ORR bear put spread?
- The breakeven for the ORR bear put spread priced on this page is roughly $36.14 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 ORR market-implied 1-standard-deviation expected move is approximately 2.78%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a bear put spread on ORR?
- Bear put spreads on ORR reduce the cost of a bearish ORR etf position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
- How does current ORR implied volatility affect this bear put spread?
- Current ORR ATM IV is 9.70%; IV rank context is unavailable in the current snapshot.