ORC P&L Curve
Orchid Island Capital, Inc. (ORC) operates in the Real Estate sector, specifically the REIT - Mortgage industry, with a market capitalization near $1.06B, listed on NYSE, carrying a beta of 1.58 to the broader market. Orchid Island Capital, Inc. Led by Robert E. Cauley, public since 2013-02-14.
A profit/loss curve charts the theoretical gain or loss of an options position across a range of underlying prices. It helps traders visualize risk, identify breakeven points, and compare strategies before committing capital.
- Exchange
- NYSE
- Sector
- Real Estate
- Industry
- REIT - Mortgage
- Market Cap
- $1.06B
- IPO Date
- 2013-02-14
- CEO
- Robert E. Cauley
- Beta
- 1.58
At the current $6.86 spot price with 67.0% ATM implied volatility and 34 days to the front expiration, an at-the-money long straddle carries an approximate combined premium near $1.12, producing breakevens at roughly $5.74 and $7.98. Market-implied 1-standard-deviation range extends from $6.56 to $7.16, which sets the relevant P&L evaluation window for most near-term strategies. Payoff diagrams should be rebuilt from the live options chain; the preceding values are illustrative and assume a single at-the-money straddle for reference.
Frequently asked ORC pl curve questions
- What does a ORC ATM straddle cost today?
- Using current ORC pricing (67.0% ATM IV, 34-day front expiration, $6.86 spot), an at-the-money long straddle (long call + long put at the same strike) carries an approximate combined premium near $1.12 per spread. Breakevens land at roughly $7.98 on the upside and $5.74 on the downside. The estimate uses the Brenner-Subrahmanyam approximation for at-the-money options under Black-Scholes.
- How do I read an options P&L curve?
- An options P&L curve plots theoretical position value at expiration (or at any chosen evaluation date) against the underlying price. The X-axis is the underlying price scenario, the Y-axis is position dollar P&L. The shape of the curve tells you the strategy's directional sensitivity, breakeven points, maximum profit and loss levels, and where time decay or volatility shifts will be most impactful. Multi-leg structures combine the curves of the individual legs to produce composite payoff diagrams.
- What's the difference between a P&L curve and a payoff diagram?
- Strictly: a payoff diagram shows option value at expiration (no time premium left), while a P&L curve typically shows position value at any evaluation date (with remaining time premium). The expiration payoff diagram has kinks at the strikes; the early P&L curve is smooth. For directional-vega trades, the early P&L curve also responds to IV shifts that the expiration payoff diagram does not capture - which is why options traders often look at both views.
- Why are illustrative ORC P&L numbers approximate?
- The numbers above use Black-Scholes assumptions (lognormal returns, constant volatility, no early exercise, no dividends). Real-world option prices reflect skew, term structure, jump risk, and (for US-style options) early exercise premium. Use the live options chain for actual quoted bid/ask prices when sizing trades; the values here illustrate magnitude only.