ORLA Butterfly Strategy
ORLA (Orla Mining Ltd.), in the Basic Materials sector, (Gold industry), listed on AMEX.
Orla Mining Ltd. is an exploration and development company primarily focused on mineral properties. The firm actively seeks out and advances deposits containing valuable metals such as gold, silver, zinc, lead, and copper. Its portfolio includes two wholly-owned key assets: the Camino Rojo project in Zacatecas, Mexico, which spans seven concessions covering 163,129 hectares; and the Cerro Quema project, situated on Panama's Azuero Peninsula, encompassing 14,800 hectares. Incorporated in 2007, the company, originally known as Red Mile Minerals Corp., adopted the name Orla Mining Ltd. in June 2015. Its corporate headquarters are located in Vancouver, Canada.
ORLA (Orla Mining Ltd.) trades in the Basic Materials sector, specifically Gold, with a market capitalization of approximately $3.62B, a trailing P/E of 13.15, a beta of 1.12 versus the broader market, a 52-week range of 9.16-21.98, average daily share volume of 3.3M, a public-listing history dating back to 2017, approximately 354 full-time employees. These structural characteristics shape how ORLA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.12 places ORLA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ORLA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on ORLA?
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 ORLA snapshot
As of June 26, 2026, spot at $9.66, ATM IV 119.70%, IV rank 100.00%, expected move 34.32%. The butterfly on ORLA 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 21-day expiry.
Why this butterfly structure on ORLA specifically: ORLA IV at 119.70% is rich versus its 1-year range, which makes a premium-buying ORLA butterfly relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 34.32% (roughly $3.32 on the underlying). The 21-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ORLA expiries trade a higher absolute premium for lower per-day decay. Position sizing on ORLA should anchor to the underlying notional of $9.66 per share and to the trader's directional view on ORLA stock.
ORLA butterfly setup
The ORLA 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 ORLA near $9.66, the first option leg uses a $9.18 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ORLA chain at a 21-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 ORLA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $9.18 | N/A |
| Sell 2 | Call | $9.66 | N/A |
| Buy 1 | Call | $10.14 | N/A |
ORLA 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.
ORLA butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on ORLA. 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 ORLA
Butterflies on ORLA are pinning bets - traders use them when they expect ORLA 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.
ORLA thesis for this butterfly
The market-implied 1-standard-deviation range for ORLA extends from approximately $6.34 on the downside to $12.98 on the upside. A ORLA long call butterfly is a pinning play: it pays maximum at the middle strike if ORLA settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ORLA IV rank near 100.00% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on ORLA at 119.70%. As a Basic Materials name, ORLA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ORLA-specific events.
ORLA 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. ORLA positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ORLA alongside the broader basket even when ORLA-specific fundamentals are unchanged. Always rebuild the position from current ORLA chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ORLA?
- A butterfly on ORLA is the butterfly strategy applied to ORLA (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 ORLA stock trading near $9.66, the strikes shown on this page are snapped to the nearest listed ORLA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ORLA 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 ORLA butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 119.70%), 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 ORLA butterfly?
- The breakeven for the ORLA 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 ORLA market-implied 1-standard-deviation expected move is approximately 34.32%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ORLA?
- Butterflies on ORLA are pinning bets - traders use them when they expect ORLA 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 ORLA implied volatility affect this butterfly?
- ORLA ATM IV is at 119.70% with IV rank near 100.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.