ORGN Butterfly Strategy
ORGN (Origin Materials, Inc.), in the Basic Materials sector, (Chemicals industry), listed on NASDAQ.
Micromidas, Inc., doing business as Origin Materials, produces and commercializes plant-based PET plastic. It develops a platform for turning the carbon found in biomass into useful materials, while capturing carbon in the process. The company serves tire filler, carbon black, agriculture, and activated carbon markets. Micromidas, Inc. has a strategic alliance with Palantir Technologies Inc. The company was incorporated in 2008 and is based in West Sacramento, California with a facility in Sarnia, Canada.
ORGN (Origin Materials, Inc.) trades in the Basic Materials sector, specifically Chemicals, with a market capitalization of approximately $6.9M, a beta of 1.27 versus the broader market, a 52-week range of 1.225-28.5, average daily share volume of 152K, a public-listing history dating back to 2020, approximately 109 full-time employees. These structural characteristics shape how ORGN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.27 places ORGN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a butterfly on ORGN?
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.
Current ORGN snapshot
As of May 15, 2026, spot at $1.27, ATM IV 114.10%, IV rank 20.76%, expected move 32.71%. The butterfly on ORGN 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 98-day expiry.
Why this butterfly structure on ORGN specifically: ORGN IV at 114.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a ORGN butterfly, with a market-implied 1-standard-deviation move of approximately 32.71% (roughly $0.42 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ORGN expiries trade a higher absolute premium for lower per-day decay. Position sizing on ORGN should anchor to the underlying notional of $1.27 per share and to the trader's directional view on ORGN stock.
ORGN butterfly setup
The ORGN butterfly below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With ORGN near $1.27, the first option leg uses a $1.21 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ORGN chain at a 98-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 ORGN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $1.21 | N/A |
| Sell 2 | Call | $1.27 | N/A |
| Buy 1 | Call | $1.33 | N/A |
ORGN butterfly risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
ORGN butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ORGN. 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.
When traders use butterfly on ORGN
Butterflies on ORGN are pinning bets - traders use them when they expect ORGN 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.
ORGN thesis for this butterfly
The market-implied 1-standard-deviation range for ORGN extends from approximately $0.85 on the downside to $1.69 on the upside. A ORGN long call butterfly is a pinning play: it pays maximum at the middle strike if ORGN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ORGN IV rank near 20.76% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on ORGN at 114.10%. As a Basic Materials name, ORGN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ORGN-specific events.
ORGN 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. ORGN positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ORGN alongside the broader basket even when ORGN-specific fundamentals are unchanged. Always rebuild the position from current ORGN chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ORGN?
- A butterfly on ORGN is the butterfly strategy applied to ORGN (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 ORGN stock trading near $1.27, the strikes shown on this page are snapped to the nearest listed ORGN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ORGN 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 ORGN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 114.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ORGN butterfly?
- The breakeven for the ORGN butterfly priced on this page is no defined breakeven on the modeled curve 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 ORGN market-implied 1-standard-deviation expected move is approximately 32.71%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ORGN?
- Butterflies on ORGN are pinning bets - traders use them when they expect ORGN 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 ORGN implied volatility affect this butterfly?
- ORGN ATM IV is at 114.10% with IV rank near 20.76%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.