ORN Butterfly Strategy
ORN (Orion Group Holdings, Inc.), in the Industrials sector, (Engineering & Construction industry), listed on NYSE.
Orion Group Holdings, Inc. functions as a specialized construction company, contributing its expertise across the building, industrial, and infrastructure sectors. Its operations span a wide geographical area, encompassing the continental United States, Alaska, Canada, and the Caribbean Basin. The company organizes its business into two primary divisions: Marine and Concrete. Through its Marine segment, Orion offers a comprehensive range of services, including the construction, restoration, dredging, maintenance, and repair of diverse marine infrastructure. This includes critical marine transportation facilities such as public and cruise ship ports, private terminals, specialized navy terminals, and recreational marinas and docks. The company also provides ongoing upkeep, emergency repairs, inspections, demolition, and salvage services for these facilities.
ORN (Orion Group Holdings, Inc.) trades in the Industrials sector, specifically Engineering & Construction, with a market capitalization of approximately $402.1M, a trailing P/E of 111.06, a beta of 1.39 versus the broader market, a 52-week range of 6.44-17.4, average daily share volume of 459K, 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 111.06 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 butterfly on ORN?
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.
ORN snapshot
As of August 14, 2026, spot at $10.01, ATM IV 138.40%, IV rank 33.45%, expected move 39.68%. The butterfly on ORN below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this butterfly structure on ORN specifically: ORN IV at 138.40% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 39.68% (roughly $3.97 on the underlying). The 35-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 $10.01 per share and to the trader's directional view on ORN stock.
ORN butterfly setup
The ORN 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 ORN at $10.01 on that close, the first option leg uses a $9.51 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 35-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 | Call | $9.51 | N/A |
| Sell 2 | Call | $10.01 | N/A |
| Buy 1 | Call | $10.51 | N/A |
ORN 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.
ORN butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly 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 butterfly on ORN
Butterflies on ORN are pinning bets - traders use them when they expect ORN 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.
ORN thesis for this butterfly
The market-implied 1-standard-deviation range for ORN extends from approximately $6.04 on the downside to $13.98 on the upside. A ORN long call butterfly is a pinning play: it pays maximum at the middle strike if ORN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current ORN IV rank near 33.45% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on ORN should anchor more to the directional view and the expected-move geometry. 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 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. 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. Always rebuild the position from current ORN chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on ORN?
- A butterfly on ORN is the butterfly strategy applied to ORN (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 ORN stock at $10.01 on the most recent close, the strikes shown on this page are snapped to the nearest listed ORN chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ORN 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 ORN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 138.40%), 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 butterfly?
- The breakeven for the ORN butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The ORN market-implied 1-standard-deviation expected move in the same options snapshot is approximately 39.68%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on ORN?
- Butterflies on ORN are pinning bets - traders use them when they expect ORN 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 ORN implied volatility affect this butterfly?
- ORN ATM IV is at 138.40% with IV rank near 33.45%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.