ORRF Collar Strategy
ORRF (Orrstown Financial Services, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Orrstown Financial Services, Inc. operates as the holding company for Orrstown Bank that provides commercial banking and trust services in the United States. The company accepts various deposits, including checking, savings, time, demand, and money market deposits. It also offers commercial loans, such as commercial real estate, equipment, construction, working capital, and other commercial purpose loans, as well as industrial loans; consumer loans comprising home equity and other consumer loans, as well as home equity lines of credit; residential mortgage loans; acquisition and development loans; municipal loans; and installment and other loans. In addition, the company provides renders services as trustee, executor, administrator, guardian, managing agent, custodian, and investment advisor, as well as provides other fiduciary services under the Orrstown Financial Advisors name; and offers retail brokerage services through a third-party broker/dealer arrangement. Further, it offers investment advisory, insurance, and brokerage services. The company operates through offices in Berks, Cumberland, Dauphin, Franklin, Lancaster, Perry, and York counties, Pennsylvania; and Anne Arundel, Baltimore, Howard, and Washington counties, Maryland, as well as Baltimore City, Maryland.
ORRF (Orrstown Financial Services, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $699.5M, a trailing P/E of 8.11, a beta of 0.70 versus the broader market, a 52-week range of 29.31-40.72, average daily share volume of 169K, a public-listing history dating back to 1999, approximately 607 full-time employees. These structural characteristics shape how ORRF stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.70 indicates ORRF has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 8.11 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. ORRF pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on ORRF?
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 ORRF snapshot
As of May 15, 2026, spot at $35.19, ATM IV 40.50%, IV rank 14.04%, expected move 11.61%. The collar on ORRF 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 collar structure on ORRF specifically: IV regime affects collar pricing on both sides; compressed ORRF IV at 40.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.61% (roughly $4.09 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 ORRF expiries trade a higher absolute premium for lower per-day decay. Position sizing on ORRF should anchor to the underlying notional of $35.19 per share and to the trader's directional view on ORRF stock.
ORRF collar setup
The ORRF 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 ORRF near $35.19, the first option leg uses a $36.95 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ORRF 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 ORRF shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $35.19 | long |
| Sell 1 | Call | $36.95 | N/A |
| Buy 1 | Put | $33.43 | N/A |
ORRF 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.
ORRF collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on ORRF. 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 ORRF
Collars on ORRF hedge an existing long ORRF 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.
ORRF thesis for this collar
The market-implied 1-standard-deviation range for ORRF extends from approximately $31.10 on the downside to $39.28 on the upside. A ORRF collar hedges an existing long ORRF 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 ORRF IV rank near 14.04% 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 ORRF at 40.50%. As a Financial Services name, ORRF options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ORRF-specific events.
ORRF 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. ORRF positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ORRF alongside the broader basket even when ORRF-specific fundamentals are unchanged. Always rebuild the position from current ORRF chain quotes before placing a trade.
Frequently asked questions
- What is a collar on ORRF?
- A collar on ORRF is the collar strategy applied to ORRF (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 ORRF stock trading near $35.19, the strikes shown on this page are snapped to the nearest listed ORRF chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ORRF 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 ORRF collar priced from the end-of-day chain at a 30-day expiry (ATM IV 40.50%), 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 ORRF collar?
- The breakeven for the ORRF 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 ORRF market-implied 1-standard-deviation expected move is approximately 11.61%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ORRF?
- Collars on ORRF hedge an existing long ORRF 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 ORRF implied volatility affect this collar?
- ORRF ATM IV is at 40.50% with IV rank near 14.04%, 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.