ORA Cash-Secured Put 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 cash-secured put on ORA?
A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike.
ORA snapshot
As of August 14, 2026, spot at $114.95, ATM IV 33.50%, IV rank 39.24%, expected move 9.60%. The cash-secured put 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 cash-secured put structure on ORA specifically: ORA IV at 33.50% is mid-range versus its 1-year history, so the credit collected on a ORA cash-secured put sits in line with its long-run distribution, 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 cash-secured put setup
The ORA cash-secured put 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) |
|---|---|---|---|
| Sell 1 | Put | $110.00 | $2.65 |
ORA cash-secured put risk and reward
- Net Premium / Debit
- +$265.00
- Max Profit (per contract)
- $265.00
- Max Loss (per contract)
- -$10,734.00
- Breakeven(s)
- $107.35
- Risk / Reward Ratio
- 0.025
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
ORA cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put 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% | -$10,734.00 |
| $25.42 | -77.9% | -$8,192.50 |
| $50.84 | -55.8% | -$5,651.01 |
| $76.25 | -33.7% | -$3,109.51 |
| $101.67 | -11.6% | -$568.01 |
| $127.08 | +10.6% | +$265.00 |
| $152.50 | +32.7% | +$265.00 |
| $177.91 | +54.8% | +$265.00 |
| $203.33 | +76.9% | +$265.00 |
| $228.74 | +99.0% | +$265.00 |
When traders use cash-secured put on ORA
Cash-secured puts on ORA earn premium while a trader waits to acquire ORA stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ORA.
ORA thesis for this cash-secured put
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 cash-secured put lets a trader earn premium while waiting to acquire ORA at the strike price; the strategy is most attractive when the trader is comfortable holding the underlying at that level and IV is rich enough to compensate for the assignment risk. Current ORA IV rank near 39.24% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put 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 cash-secured put 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. 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. Short-premium structures like a cash-secured put on ORA carry tail risk when realized volatility exceeds the implied move; review historical ORA earnings reactions and macro stress periods before sizing. Always rebuild the position from current ORA chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on ORA?
- A cash-secured put on ORA is the cash-secured put strategy applied to ORA (stock). The strategy is structurally neutral to slightly bullish: A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike. 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 cash-secured put max profit and max loss calculated?
- Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium. For the ORA cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 33.50%), the computed maximum profit is $265.00 per contract and the computed maximum loss is -$10,734.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ORA cash-secured put?
- The breakeven for the ORA cash-secured put priced on this page is roughly $107.35 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 cash-secured put on ORA?
- Cash-secured puts on ORA earn premium while a trader waits to acquire ORA stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ORA.
- How does current ORA implied volatility affect this cash-secured put?
- 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.