How are ORR covered call max profit and max loss calculated?

Max profit equals short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium. For the ORR covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 10.80%), the computed maximum profit is $222.00 per contract and the computed maximum loss is -$3,577.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ORR covered call?

The breakeven for the ORR covered call priced on this page is roughly $35.78 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 3.10%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ORR implied volatility affect this covered call?

Current ORR ATM IV is 10.80%; IV rank context is unavailable in the current snapshot.

ORR Covered Call 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 covered call on ORR?

A covered call pairs long stock with a short out-of-the-money call, collecting premium and capping upside above the short strike in exchange for income.

Current ORR snapshot

As of June 30, 2026, spot at $35.86, ATM IV 10.80%, expected move 3.10%. The covered call 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 17-day expiry.

Why this covered call structure on ORR specifically: IV rank is unavailable in the current snapshot, so regime-based timing for ORR is inferred from ATM IV at 10.80% alone, with a market-implied 1-standard-deviation move of approximately 3.10% (roughly $1.11 on the underlying). The 17-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 $35.86 per share and to the trader's directional view on ORR etf.

ORR covered call setup

The ORR covered call 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 $35.86, the first option leg uses a $38.00 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 17-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 100 shares	Stock	$35.86	long
Sell 1	Call	$38.00	$0.08

ORR covered call risk and reward

Net Premium / Debit: -$3,578.00
Max Profit (per contract): $222.00
Max Loss (per contract): -$3,577.00
Breakeven(s): $35.78
Risk / Reward Ratio: 0.062

Max profit equals short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium.

ORR covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$3,577.00
$7.94	-77.9%	-$2,784.23
$15.87	-55.8%	-$1,991.45
$23.79	-33.6%	-$1,198.68
$31.72	-11.5%	-$405.90
$39.65	+10.6%	+$222.00
$47.58	+32.7%	+$222.00
$55.50	+54.8%	+$222.00
$63.43	+76.9%	+$222.00
$71.36	+99.0%	+$222.00

When traders use covered call on ORR

Covered calls on ORR are an income strategy run on existing ORR etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.

ORR thesis for this covered call

The market-implied 1-standard-deviation range for ORR extends from approximately $34.75 on the downside to $36.97 on the upside. A ORR covered call collects premium on an existing long ORR position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether ORR will breach that level within the expiration window. 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 covered call positions are structurally neutral to slightly bullish; 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. Short-premium structures like a covered call on ORR carry tail risk when realized volatility exceeds the implied move; review historical ORR earnings reactions and macro stress periods before sizing. Always rebuild the position from current ORR chain quotes before placing a trade.

Frequently asked questions

What is a covered call on ORR?: A covered call on ORR is the covered call strategy applied to ORR (etf). The strategy is structurally neutral to slightly bullish: A covered call pairs long stock with a short out-of-the-money call, collecting premium and capping upside above the short strike in exchange for income. With ORR etf trading near $35.86, 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 covered call max profit and max loss calculated?: Max profit equals short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium. For the ORR covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 10.80%), the computed maximum profit is $222.00 per contract and the computed maximum loss is -$3,577.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ORR covered call?: The breakeven for the ORR covered call priced on this page is roughly $35.78 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 3.10%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a covered call on ORR?: Covered calls on ORR are an income strategy run on existing ORR etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
How does current ORR implied volatility affect this covered call?: Current ORR ATM IV is 10.80%; IV rank context is unavailable in the current snapshot.