CMRE Straddle 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 straddle on CMRE?
A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration.
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 straddle 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 straddle structure on CMRE specifically: CMRE IV at 38.90% 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 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 straddle setup
The CMRE straddle 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 $17.00 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) |
|---|---|---|---|
| Buy 1 | Call | $17.00 | $0.90 |
| Buy 1 | Put | $17.00 | $0.70 |
CMRE straddle risk and reward
- Net Premium / Debit
- -$160.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$152.61
- Breakeven(s)
- $15.40, $18.60
- Risk / Reward Ratio
- Unbounded
Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit.
CMRE straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle 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% | +$1,539.00 |
| $3.81 | -77.8% | +$1,159.25 |
| $7.60 | -55.7% | +$779.50 |
| $11.40 | -33.6% | +$399.75 |
| $15.20 | -11.5% | +$20.01 |
| $19.00 | +10.6% | +$39.74 |
| $22.79 | +32.7% | +$419.49 |
| $26.59 | +54.8% | +$799.24 |
| $30.39 | +76.9% | +$1,178.99 |
| $34.19 | +99.0% | +$1,558.74 |
When traders use straddle on CMRE
Straddles on CMRE are pure-volatility plays that profit from large moves in either direction; traders typically buy CMRE straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
CMRE thesis for this straddle
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 long straddle is a pure-volatility play: it profits when the underlying moves far enough from the strike in either direction to overcome the combined call plus put debit, regardless of direction. Current CMRE IV rank near 38.21% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle 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 straddle positions are structurally neutral / high-volatility (long premium); 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. Always rebuild the position from current CMRE chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on CMRE?
- A straddle on CMRE is the straddle strategy applied to CMRE (stock). The strategy is structurally neutral / high-volatility (long premium): A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration. 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 straddle max profit and max loss calculated?
- Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit. For the CMRE straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 38.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$152.61 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CMRE straddle?
- The breakeven for the CMRE straddle priced on this page is roughly $15.40 and $18.60 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 straddle on CMRE?
- Straddles on CMRE are pure-volatility plays that profit from large moves in either direction; traders typically buy CMRE straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
- How does current CMRE implied volatility affect this straddle?
- 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.