ORN Bear Put Spread Strategy
ORN (Orion Group Holdings, Inc.), in the Industrials sector, (Engineering & Construction industry), listed on NYSE.
Orion Group Holdings, Inc. operates as a specialty construction company in the building, industrial, and infrastructure sectors in the continental United States, Alaska, Canada, and the Caribbean Basin. It operates in two segments, Marine and Concrete. The company provides various marine construction services, including construction, restoration, dredging, maintenance, and repair of marine transportation facilities and pipelines, bridges and causeways, and marine environmental structures. Its marine transportation facility projects comprise public port facilities, cruise ship port facilities, private terminals, special-use navy terminals, recreational use marinas and docks, and other marine-based facilities. The company also offers on-going maintenance and repair, inspection, emergency repair, and demolition and salvage services to marine transportation facilities. Its marine pipeline service projects include the installation and removal of underwater buried pipeline transmission lines; the installation of pipeline intakes and outfalls for industrial facilities; the construction of pipeline outfalls for wastewater and industrial discharges; river crossing and directional drilling; the creation of hot taps and tie-ins; and inspection, maintenance, and repair services.
ORN (Orion Group Holdings, Inc.) trades in the Industrials sector, specifically Engineering & Construction, with a market capitalization of approximately $621.4M, a trailing P/E of 71.68, a beta of 1.39 versus the broader market, a 52-week range of 6.44-15.81, average daily share volume of 378K, a public-listing history dating back to 2007, approximately 2K full-time employees. These structural characteristics shape how ORN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.39 indicates ORN has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 71.68 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.
What is a bear put spread on ORN?
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 ORN snapshot
As of May 15, 2026, spot at $15.02, ATM IV 67.60%, IV rank 13.15%, expected move 19.38%. The bear put spread on ORN 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 ORN specifically: ORN IV at 67.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a ORN bear put spread, with a market-implied 1-standard-deviation move of approximately 19.38% (roughly $2.91 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 ORN expiries trade a higher absolute premium for lower per-day decay. Position sizing on ORN should anchor to the underlying notional of $15.02 per share and to the trader's directional view on ORN stock.
ORN bear put spread setup
The ORN 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 ORN near $15.02, the first option leg uses a $15.02 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ORN 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 ORN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $15.02 | N/A |
| Sell 1 | Put | $14.27 | N/A |
ORN bear put spread 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 strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-put strike minus net debit.
ORN bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on ORN. 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 bear put spread on ORN
Bear put spreads on ORN reduce the cost of a bearish ORN stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
ORN thesis for this bear put spread
The market-implied 1-standard-deviation range for ORN extends from approximately $12.11 on the downside to $17.93 on the upside. A ORN bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on ORN, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current ORN IV rank near 13.15% 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 ORN at 67.60%. As a Industrials name, ORN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ORN-specific events.
ORN 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. ORN positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ORN alongside the broader basket even when ORN-specific fundamentals are unchanged. Long-premium structures like a bear put spread on ORN 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 ORN chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on ORN?
- A bear put spread on ORN is the bear put spread strategy applied to ORN (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 ORN stock trading near $15.02, the strikes shown on this page are snapped to the nearest listed ORN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ORN 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 ORN bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 67.60%), 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 ORN bear put spread?
- The breakeven for the ORN 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 ORN market-implied 1-standard-deviation expected move is approximately 19.38%; 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 ORN?
- Bear put spreads on ORN reduce the cost of a bearish ORN 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 ORN implied volatility affect this bear put spread?
- ORN ATM IV is at 67.60% with IV rank near 13.15%, 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.