ORA Butterfly Strategy
ORA (Ormat Technologies, Inc.), in the Utilities sector, (Renewable Utilities industry), listed on NYSE.
Ormat Technologies, Inc. (ORA) is a global enterprise dedicated to geothermal and recovered energy power solutions, with significant operations in the United States, Indonesia, Kenya, Turkey, Chile, Guadeloupe, Guatemala, Ethiopia, New Zealand, Honduras, and various other international locations. The company's operations are divided into three distinct business units: Electricity Generation, Product Manufacturing, and Energy Storage Solutions. The Electricity Generation division handles the full spectrum of power plant development, from designing and constructing to owning and operating facilities that harness geothermal, solar photovoltaic, and recovered energy, subsequently selling the generated power. Through its Product Manufacturing segment, Ormat designs, produces, and distributes specialized equipment for geothermal and recovered energy electricity generation, including remote power units like fossil fuel-powered turbo-generators and heavy-duty direct-current generators. This segment also provides complete engineering, procurement, construction (EPC), and ongoing operation and maintenance (O&M) services for geothermal and recovered energy power plants. Its diverse clientele includes contractors, developers, owners, and operators of geothermal power facilities, as well as industrial entities such as operators of interstate natural gas pipelines, gas processing plants, cement factories, and other energy-intensive industrial processes.
ORA (Ormat Technologies, Inc.) trades in the Utilities sector, specifically Renewable Utilities, with a market capitalization of approximately $6.97B, a trailing P/E of 55.05, a beta of 0.90 versus the broader market, a 52-week range of 87.33-146.39, average daily share volume of 910K, a public-listing history dating back to 2004, approximately 2K full-time employees. These structural characteristics shape how ORA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.90 places ORA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 55.05 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. ORA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on ORA?
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.
ORA snapshot
As of August 14, 2026, spot at $114.95, ATM IV 33.50%, IV rank 39.24%, expected move 9.60%. The butterfly on ORA 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 ORA specifically: ORA IV at 33.50% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 9.60% (roughly $11.04 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 ORA expiries trade a higher absolute premium for lower per-day decay. Position sizing on ORA should anchor to the underlying notional of $114.95 per share and to the trader's directional view on ORA stock.
ORA butterfly setup
The ORA 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 ORA at $114.95 on that close, the first option leg uses a $110.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ORA 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 ORA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $110.00 | $7.90 |
| Sell 2 | Call | $115.00 | $4.90 |
| Buy 1 | Call | $120.00 | $3.00 |
ORA butterfly risk and reward
- Net Premium / Debit
- -$110.00
- Max Profit (per contract)
- $336.74
- Max Loss (per contract)
- -$110.00
- Breakeven(s)
- $111.10, $118.90
- Risk / Reward Ratio
- 3.061
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.
ORA butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ORA. 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% | -$110.00 |
| $25.42 | -77.9% | -$110.00 |
| $50.84 | -55.8% | -$110.00 |
| $76.25 | -33.7% | -$110.00 |
| $101.67 | -11.6% | -$110.00 |
| $127.08 | +10.6% | -$110.00 |
| $152.50 | +32.7% | -$110.00 |
| $177.91 | +54.8% | -$110.00 |
| $203.33 | +76.9% | -$110.00 |
| $228.74 | +99.0% | -$110.00 |
When traders use butterfly on ORA
Butterflies on ORA are pinning bets - traders use them when they expect ORA 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.
ORA thesis for this butterfly
The market-implied 1-standard-deviation range for ORA extends from approximately $103.91 on the downside to $125.99 on the upside. A ORA long call butterfly is a pinning play: it pays maximum at the middle strike if ORA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ORA IV rank near 39.24% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on ORA should anchor more to the directional view and the expected-move geometry. As a Utilities name, ORA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ORA-specific events.
ORA 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. ORA positions also carry Utilities sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ORA alongside the broader basket even when ORA-specific fundamentals are unchanged. Always rebuild the position from current ORA chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ORA?
- A butterfly on ORA is the butterfly strategy applied to ORA (stock). 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 ORA stock at $114.95 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed ORA chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ORA 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 ORA butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 33.50%), the computed maximum profit is $336.74 per contract and the computed maximum loss is -$110.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ORA butterfly?
- The breakeven for the ORA butterfly priced on this page is roughly $111.10 and $118.90 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 ORA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.60%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ORA?
- Butterflies on ORA are pinning bets - traders use them when they expect ORA 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 ORA implied volatility affect this butterfly?
- ORA ATM IV is at 33.50% with IV rank near 39.24%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.