ORR Bear Put Spread Strategy
ORR (Militia Long/Short Equity ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
ORR is an actively managed ETF aiming for capital appreciation through both long and short equity positions. The long portfolio targets undervalued or growth potential equities, with a focus on developed markets. Long positions may exceed 100% of net assets, capped typically at 150%. Short positions focus on U.S.-listed companies and ETFs expected to decline, influenced by declining future cash flow projections. ORR can have short exposure up to 100% and may include inverse or leveraged ETFs. The fund actively trades positions, resulting in high annual portfolio turnover.
ORR (Militia Long/Short Equity ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $36.0M, a beta of 0.09 versus the broader market, a 52-week range of 27.74-39.39, average daily share volume of 274K, 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 0.09 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 May 15, 2026, spot at $36.59, ATM IV 21.80%, expected move 6.25%. 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 34-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 21.80% alone, with a market-implied 1-standard-deviation move of approximately 6.25% (roughly $2.29 on the underlying). The 34-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 $36.59 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 $36.59, 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 34-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 | $1.13 |
| Sell 1 | Put | $35.00 | $0.40 |
ORR bear put spread risk and reward
- Net Premium / Debit
- -$73.00
- Max Profit (per contract)
- $127.00
- Max Loss (per contract)
- -$73.00
- Breakeven(s)
- $36.27
- Risk / Reward Ratio
- 1.740
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% | +$127.00 |
| $8.10 | -77.9% | +$127.00 |
| $16.19 | -55.8% | +$127.00 |
| $24.28 | -33.7% | +$127.00 |
| $32.37 | -11.5% | +$127.00 |
| $40.46 | +10.6% | -$73.00 |
| $48.54 | +32.7% | -$73.00 |
| $56.63 | +54.8% | -$73.00 |
| $64.72 | +76.9% | -$73.00 |
| $72.81 | +99.0% | -$73.00 |
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 $34.30 on the downside to $38.88 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 $36.59, 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 21.80%), the computed maximum profit is $127.00 per contract and the computed maximum loss is -$73.00 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 $36.27 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 6.25%; 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 21.80%; IV rank context is unavailable in the current snapshot.