ORA Collar Strategy
ORA (Ormat Technologies, Inc.), in the Utilities sector, (Renewable Utilities industry), listed on NYSE.
Ormat Technologies, Inc. engages in the geothermal and recovered energy power business in the United States, Indonesia, Kenya, Turkey, Chile, Guadeloupe, Guatemala, Ethiopia, New Zealand, Honduras, and internationally. It operates through three segments: Electricity, Product, and Energy Storage. The Electricity segment develops, builds, owns, and operates geothermal, solar photovoltaic, and recovered energy-based power plants; and sells electricity. The Product segment designs, manufactures, and sells equipment for geothermal, recovered energy-based electricity generation, and remote power units, such as fossil fuel powered turbo-generators and heavy duty direct-current generators; and provides services relating to the engineering, procurement, construction, operation, and maintenance of geothermal and recovered energy-based power plants. The Product segment serves contractors; developers, owners, and operators of geothermal power plants; and owners and operators of interstate natural gas pipelines, gas processing plants, and cement plants, as well as companies in other energy-intensive industrial processes. The Energy Storage segment offers energy storage and related services, as well as services relating to the engineering, procurement, construction, operation, and maintenance of energy storage units.
ORA (Ormat Technologies, Inc.) trades in the Utilities sector, specifically Renewable Utilities, with a market capitalization of approximately $8.20B, a trailing P/E of 63.72, a beta of 0.80 versus the broader market, a 52-week range of 70.42-135.33, average daily share volume of 930K, 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 0.80 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 63.72 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 collar on ORA?
A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot.
Current ORA snapshot
As of May 15, 2026, spot at $132.15, ATM IV 35.70%, IV rank 47.13%, expected move 10.23%. The collar on ORA 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 collar structure on ORA specifically: IV regime affects collar pricing on both sides; mid-range ORA IV at 35.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.23% (roughly $13.53 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 ORA expiries trade a higher absolute premium for lower per-day decay. Position sizing on ORA should anchor to the underlying notional of $132.15 per share and to the trader's directional view on ORA stock.
ORA collar setup
The ORA collar below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With ORA near $132.15, the first option leg uses a $140.00 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 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 ORA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $132.15 | long |
| Sell 1 | Call | $140.00 | $3.00 |
| Buy 1 | Put | $125.00 | $2.73 |
ORA collar risk and reward
- Net Premium / Debit
- -$13,187.50
- Max Profit (per contract)
- $812.50
- Max Loss (per contract)
- -$687.50
- Breakeven(s)
- $131.88
- Risk / Reward Ratio
- 1.182
Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium.
ORA collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar 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% | -$687.50 |
| $29.23 | -77.9% | -$687.50 |
| $58.45 | -55.8% | -$687.50 |
| $87.66 | -33.7% | -$687.50 |
| $116.88 | -11.6% | -$687.50 |
| $146.10 | +10.6% | +$812.50 |
| $175.32 | +32.7% | +$812.50 |
| $204.54 | +54.8% | +$812.50 |
| $233.75 | +76.9% | +$812.50 |
| $262.97 | +99.0% | +$812.50 |
When traders use collar on ORA
Collars on ORA hedge an existing long ORA stock position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
ORA thesis for this collar
The market-implied 1-standard-deviation range for ORA extends from approximately $118.62 on the downside to $145.68 on the upside. A ORA collar hedges an existing long ORA position with a protective put while financing the put cost via a short call; when the premiums roughly offset, the collar acts as a near-zero-cost insurance band around the current spot. Current ORA IV rank near 47.13% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar 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 collar positions are structurally neutral (protective); 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 collar on ORA?
- A collar on ORA is the collar strategy applied to ORA (stock). The strategy is structurally neutral (protective): A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot. With ORA stock trading near $132.15, the strikes shown on this page are snapped to the nearest listed ORA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ORA collar max profit and max loss calculated?
- Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium. For the ORA collar priced from the end-of-day chain at a 30-day expiry (ATM IV 35.70%), the computed maximum profit is $812.50 per contract and the computed maximum loss is -$687.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ORA collar?
- The breakeven for the ORA collar priced on this page is roughly $131.88 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 ORA market-implied 1-standard-deviation expected move is approximately 10.23%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ORA?
- Collars on ORA hedge an existing long ORA stock position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
- How does current ORA implied volatility affect this collar?
- ORA ATM IV is at 35.70% with IV rank near 47.13%, 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.