CMRE Iron Condor Strategy
CMRE (Costamare Inc.), in the Industrials sector, (Marine Shipping industry), listed on NYSE.
Costamare Inc. owns and charters containerships to liner companies worldwide. As of March 18, 2022, it had a fleet of 76 containerships with a total capacity of approximately 557,400 twenty-foot equivalent units and 45 dry bulk vessels with a total capacity of approximately 2,435,500 DWT. The company was founded in 1974 and is based in Monaco.
CMRE (Costamare Inc.) trades in the Industrials sector, specifically Marine Shipping, with a market capitalization of approximately $2.03B, a trailing P/E of 5.87, a beta of 1.00 versus the broader market, a 52-week range of 8.19-18.06, average daily share volume of 445K, a public-listing history dating back to 2010, approximately 2K full-time employees. These structural characteristics shape how CMRE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.00 places CMRE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 5.87 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. CMRE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on CMRE?
An iron condor sells a call spread and a put spread at strikes outside spot, collecting net premium that is kept if the underlying stays inside the inner short strikes.
Current CMRE snapshot
As of May 15, 2026, spot at $17.18, ATM IV 38.90%, IV rank 38.21%, expected move 11.15%. The iron condor on CMRE 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 iron condor structure on CMRE specifically: CMRE IV at 38.90% is mid-range versus its 1-year history, so the credit collected on a CMRE iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 11.15% (roughly $1.92 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 CMRE expiries trade a higher absolute premium for lower per-day decay. Position sizing on CMRE should anchor to the underlying notional of $17.18 per share and to the trader's directional view on CMRE stock.
CMRE iron condor setup
The CMRE iron condor below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CMRE near $17.18, the first option leg uses a $18.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CMRE 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 CMRE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $18.00 | $0.48 |
| Buy 1 | Call | $19.00 | $0.20 |
| Sell 1 | Put | $16.00 | $0.78 |
| Buy 1 | Put | $15.00 | $0.20 |
CMRE iron condor risk and reward
- Net Premium / Debit
- +$85.00
- Max Profit (per contract)
- $85.00
- Max Loss (per contract)
- -$15.00
- Breakeven(s)
- $15.15, $18.85
- Risk / Reward Ratio
- 5.667
Max profit equals the net credit times 100 inside the inner strikes; max loss equals wing width minus credit times 100. Two breakevens at inner strikes plus and minus the credit.
CMRE iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on CMRE. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -99.9% | -$15.00 |
| $3.81 | -77.8% | -$15.00 |
| $7.60 | -55.7% | -$15.00 |
| $11.40 | -33.6% | -$15.00 |
| $15.20 | -11.5% | +$4.99 |
| $19.00 | +10.6% | -$14.74 |
| $22.79 | +32.7% | -$15.00 |
| $26.59 | +54.8% | -$15.00 |
| $30.39 | +76.9% | -$15.00 |
| $34.19 | +99.0% | -$15.00 |
When traders use iron condor on CMRE
Iron condors on CMRE are a delta-neutral premium-collection structure that profits if CMRE stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
CMRE thesis for this iron condor
The market-implied 1-standard-deviation range for CMRE extends from approximately $15.26 on the downside to $19.10 on the upside. A CMRE iron condor is a delta-neutral premium-collection structure that pays off when CMRE stays inside the inner short strikes through expiration; the wing width should reflect the trader's tolerance for the maximum loss scenario where the underlying breaches an outer strike. Current CMRE IV rank near 38.21% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on CMRE should anchor more to the directional view and the expected-move geometry. As a Industrials name, CMRE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CMRE-specific events.
CMRE iron condor positions are structurally neutral / range-bound; 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. CMRE positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CMRE alongside the broader basket even when CMRE-specific fundamentals are unchanged. Short-premium structures like a iron condor on CMRE carry tail risk when realized volatility exceeds the implied move; review historical CMRE earnings reactions and macro stress periods before sizing. Always rebuild the position from current CMRE chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on CMRE?
- A iron condor on CMRE is the iron condor strategy applied to CMRE (stock). The strategy is structurally neutral / range-bound: An iron condor sells a call spread and a put spread at strikes outside spot, collecting net premium that is kept if the underlying stays inside the inner short strikes. With CMRE stock trading near $17.18, the strikes shown on this page are snapped to the nearest listed CMRE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CMRE iron condor max profit and max loss calculated?
- Max profit equals the net credit times 100 inside the inner strikes; max loss equals wing width minus credit times 100. Two breakevens at inner strikes plus and minus the credit. For the CMRE iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 38.90%), the computed maximum profit is $85.00 per contract and the computed maximum loss is -$15.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CMRE iron condor?
- The breakeven for the CMRE iron condor priced on this page is roughly $15.15 and $18.85 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 CMRE market-implied 1-standard-deviation expected move is approximately 11.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a iron condor on CMRE?
- Iron condors on CMRE are a delta-neutral premium-collection structure that profits if CMRE stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current CMRE implied volatility affect this iron condor?
- CMRE ATM IV is at 38.90% with IV rank near 38.21%, 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.