ORIC Bear Put Spread Strategy
ORIC (ORIC Pharmaceuticals, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
ORIC Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, discovers and develops therapies for treatment of cancers in the United States. Its clinical stage product candidates include ORIC-533, an orally bioavailable small molecule inhibitor of CD73 being developed for resistance to chemotherapy- and immunotherapy-based treatment regimens; ORIC-944, an allosteric inhibitor of the polycomb repressive complex 2 for prostate cancer; and ORIC-114, a brain penetrant orally bioavailable irreversible inhibitor designed to selectively target epidermal growth factor receptor and human epidermal growth factor receptor 2 with high potency towards exon 20 insertion mutations. The company is also developing multiple discovery stage precision medicines targeting other cancer resistance mechanisms. It has a license and collaboration agreement with Voronoi Inc.; and a license agreement with Mirati Therapeutics, Inc. The company was incorporated in 2014 and is headquartered in South San Francisco, California.
ORIC (ORIC Pharmaceuticals, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $890.3M, a beta of 1.11 versus the broader market, a 52-week range of 4.535-14.93, average daily share volume of 1.9M, a public-listing history dating back to 2020, approximately 122 full-time employees. These structural characteristics shape how ORIC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.11 places ORIC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a bear put spread on ORIC?
A bear put spread buys an at-the-money put and sells an out-of-the-money put at a lower strike for defined risk and defined reward bounded by the strike width.
Current ORIC snapshot
As of May 15, 2026, spot at $8.18, ATM IV 98.50%, IV rank 9.99%, expected move 28.24%. The bear put spread on ORIC 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 bear put spread structure on ORIC specifically: ORIC IV at 98.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a ORIC bear put spread, with a market-implied 1-standard-deviation move of approximately 28.24% (roughly $2.31 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 ORIC expiries trade a higher absolute premium for lower per-day decay. Position sizing on ORIC should anchor to the underlying notional of $8.18 per share and to the trader's directional view on ORIC stock.
ORIC bear put spread setup
The ORIC bear put spread below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With ORIC near $8.18, the first option leg uses a $8.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ORIC 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 ORIC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $8.00 | $0.87 |
| Sell 1 | Put | $8.00 | $0.87 |
ORIC bear put spread risk and reward
- Net Premium / Debit
- $0.00
- Max Profit (per contract)
- $0.00
- Max Loss (per contract)
- $0.00
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-put strike minus net debit.
ORIC bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on ORIC. 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 | -99.9% | $0.00 |
| $1.82 | -77.8% | $0.00 |
| $3.63 | -55.7% | $0.00 |
| $5.43 | -33.6% | $0.00 |
| $7.24 | -11.5% | $0.00 |
| $9.05 | +10.6% | $0.00 |
| $10.86 | +32.7% | $0.00 |
| $12.66 | +54.8% | $0.00 |
| $14.47 | +76.9% | $0.00 |
| $16.28 | +99.0% | $0.00 |
When traders use bear put spread on ORIC
Bear put spreads on ORIC reduce the cost of a bearish ORIC stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
ORIC thesis for this bear put spread
The market-implied 1-standard-deviation range for ORIC extends from approximately $5.87 on the downside to $10.49 on the upside. A ORIC bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on ORIC, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current ORIC IV rank near 9.99% 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 ORIC at 98.50%. As a Healthcare name, ORIC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ORIC-specific events.
ORIC bear put spread positions are structurally moderately bearish; 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. ORIC positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ORIC alongside the broader basket even when ORIC-specific fundamentals are unchanged. Long-premium structures like a bear put spread on ORIC are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current ORIC chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on ORIC?
- A bear put spread on ORIC is the bear put spread strategy applied to ORIC (stock). The strategy is structurally moderately bearish: A bear put spread buys an at-the-money put and sells an out-of-the-money put at a lower strike for defined risk and defined reward bounded by the strike width. With ORIC stock trading near $8.18, the strikes shown on this page are snapped to the nearest listed ORIC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ORIC bear put spread max profit and max loss calculated?
- Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-put strike minus net debit. For the ORIC bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 98.50%), the computed maximum profit is $0.00 per contract and the computed maximum loss is $0.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ORIC bear put spread?
- The breakeven for the ORIC bear put spread 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 ORIC market-implied 1-standard-deviation expected move is approximately 28.24%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a bear put spread on ORIC?
- Bear put spreads on ORIC reduce the cost of a bearish ORIC stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
- How does current ORIC implied volatility affect this bear put spread?
- ORIC ATM IV is at 98.50% with IV rank near 9.99%, 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.