CMTG Straddle Strategy
CMTG (Claros Mortgage Trust, Inc.), in the Real Estate sector, (REIT - Mortgage industry), listed on NYSE.
Claros Mortgage Trust, Inc. functions as a real estate investment trust (REIT), primarily focusing on originating both senior and junior debt for commercial properties in transitional stages, located within prominent markets throughout the United States. Recognized as a REIT under the Internal Revenue Code, the company's net earnings are exempt from federal taxation, provided these profits are distributed as dividends to its investors. The firm was established in 2015 and has its corporate headquarters in New York, New York.
CMTG (Claros Mortgage Trust, Inc.) trades in the Real Estate sector, specifically REIT - Mortgage, with a market capitalization of approximately $262.4M, a beta of 1.16 versus the broader market, a 52-week range of 1.655-3.99, average daily share volume of 576K, a public-listing history dating back to 2021. These structural characteristics shape how CMTG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.16 places CMTG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CMTG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on CMTG?
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.
CMTG snapshot
As of August 14, 2026, spot at $1.85, ATM IV 202.50%, IV rank 38.75%, expected move 58.05%. The straddle on CMTG 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 straddle structure on CMTG specifically: CMTG IV at 202.50% 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 58.05% (roughly $1.07 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 CMTG expiries trade a higher absolute premium for lower per-day decay. Position sizing on CMTG should anchor to the underlying notional of $1.85 per share and to the trader's directional view on CMTG stock.
CMTG straddle setup
The CMTG 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 CMTG at $1.85 on that close, the first option leg uses a $1.85 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CMTG 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 CMTG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $1.85 | N/A |
| Buy 1 | Put | $1.85 | N/A |
CMTG straddle 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
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.
CMTG straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on CMTG. 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 straddle on CMTG
Straddles on CMTG are pure-volatility plays that profit from large moves in either direction; traders typically buy CMTG straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
CMTG thesis for this straddle
The market-implied 1-standard-deviation range for CMTG extends from approximately $0.78 on the downside to $2.92 on the upside. A CMTG 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 CMTG IV rank near 38.75% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on CMTG should anchor more to the directional view and the expected-move geometry. As a Real Estate name, CMTG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CMTG-specific events.
CMTG 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. CMTG positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CMTG alongside the broader basket even when CMTG-specific fundamentals are unchanged. Always rebuild the position from current CMTG chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on CMTG?
- A straddle on CMTG is the straddle strategy applied to CMTG (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 CMTG stock at $1.85 on the most recent close, the strikes shown on this page are snapped to the nearest listed CMTG chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CMTG 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 CMTG straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 202.50%), 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 CMTG straddle?
- The breakeven for the CMTG straddle 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 CMTG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 58.05%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on CMTG?
- Straddles on CMTG are pure-volatility plays that profit from large moves in either direction; traders typically buy CMTG 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 CMTG implied volatility affect this straddle?
- CMTG ATM IV is at 202.50% with IV rank near 38.75%, 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.