ORN Collar 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 $664.3M, a trailing P/E of 76.63, a beta of 1.38 versus the broader market, a 52-week range of 6.44-16.57, average daily share volume of 373K, 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 1.38 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 76.63 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 collar on ORN?
A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot.
Current ORN snapshot
As of June 30, 2026, spot at $16.77, ATM IV 52.10%, IV rank 12.44%, expected move 14.94%. The collar 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 17-day expiry.
Why this collar structure on ORN specifically: IV regime affects collar pricing on both sides; compressed ORN IV at 52.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.94% (roughly $2.50 on the underlying). The 17-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 $16.77 per share and to the trader's directional view on ORN stock.
ORN collar setup
The ORN collar 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 $16.77, the first option leg uses a $17.61 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 17-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 100 shares | Stock | $16.77 | long |
| Sell 1 | Call | $17.61 | N/A |
| Buy 1 | Put | $15.93 | N/A |
ORN collar 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 roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium.
ORN collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar 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 collar on ORN
Collars on ORN hedge an existing long ORN stock position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
ORN thesis for this collar
The market-implied 1-standard-deviation range for ORN extends from approximately $14.27 on the downside to $19.27 on the upside. A ORN collar hedges an existing long ORN position with a protective put while financing the put cost via a short call; when the premiums roughly offset, the collar acts as a near-zero-cost insurance band around the current spot. Current ORN IV rank near 12.44% 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 52.10%. 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 collar positions are structurally neutral (protective); 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 collar on ORN?
- A collar on ORN is the collar strategy applied to ORN (stock). The strategy is structurally neutral (protective): A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot. With ORN stock trading near $16.77, 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 collar max profit and max loss calculated?
- Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium. For the ORN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 52.10%), 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 ORN collar?
- The breakeven for the ORN collar 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 14.94%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ORN?
- Collars on ORN hedge an existing long ORN stock position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
- How does current ORN implied volatility affect this collar?
- ORN ATM IV is at 52.10% with IV rank near 12.44%, 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.