CTRM Butterfly Strategy
CTRM (Castor Maritime Inc.), in the Industrials sector, (Marine Shipping industry), listed on NASDAQ.
Castor Maritime Inc. operates as a global shipping company, offering maritime transportation services across three primary divisions: Dry Bulk, Aframax/LR2 Tanker, and Handysize Tanker. The firm is dedicated to the seaborne carriage of various goods, including dry bulk commodities such as iron ore, coal, and soybeans, as well as both crude oil and refined petroleum products. As of December 31, 2021, Castor Maritime maintained a fleet of 29 vessels, which prominently featured two Handysize tanker vessels, seven Aframax/LR2 tanker vessels, and fourteen dry bulk carriers. The company was founded in 2017 and has its base in Limassol, Cyprus.
CTRM (Castor Maritime Inc.) trades in the Industrials sector, specifically Marine Shipping, with a market capitalization of approximately $20.5M, a trailing P/E of 0.24, a beta of 1.22 versus the broader market, a 52-week range of 1.66-2.654, average daily share volume of 55K, a public-listing history dating back to 2019, approximately 1 full-time employees. These structural characteristics shape how CTRM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.22 places CTRM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 0.24 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a butterfly on CTRM?
A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration.
Current CTRM snapshot
As of June 30, 2026, spot at $2.11, ATM IV 63.60%, IV rank 10.42%, expected move 18.23%. The butterfly on CTRM 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 butterfly structure on CTRM specifically: CTRM IV at 63.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a CTRM butterfly, with a market-implied 1-standard-deviation move of approximately 18.23% (roughly $0.38 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 CTRM expiries trade a higher absolute premium for lower per-day decay. Position sizing on CTRM should anchor to the underlying notional of $2.11 per share and to the trader's directional view on CTRM stock.
CTRM butterfly setup
The CTRM butterfly below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CTRM near $2.11, the first option leg uses a $2.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CTRM 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 CTRM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $2.00 | N/A |
| Sell 2 | Call | $2.11 | N/A |
| Buy 1 | Call | $2.22 | N/A |
CTRM butterfly 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 equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit.
CTRM butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on CTRM. 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 butterfly on CTRM
Butterflies on CTRM are pinning bets - traders use them when they expect CTRM to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
CTRM thesis for this butterfly
The market-implied 1-standard-deviation range for CTRM extends from approximately $1.73 on the downside to $2.49 on the upside. A CTRM long call butterfly is a pinning play: it pays maximum at the middle strike if CTRM settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current CTRM IV rank near 10.42% 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 CTRM at 63.60%. As a Industrials name, CTRM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CTRM-specific events.
CTRM butterfly positions are structurally neutral / pin (limited-risk, limited-reward); 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. CTRM positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CTRM alongside the broader basket even when CTRM-specific fundamentals are unchanged. Always rebuild the position from current CTRM chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on CTRM?
- A butterfly on CTRM is the butterfly strategy applied to CTRM (stock). The strategy is structurally neutral / pin (limited-risk, limited-reward): A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration. With CTRM stock trading near $2.11, the strikes shown on this page are snapped to the nearest listed CTRM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CTRM butterfly max profit and max loss calculated?
- Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit. For the CTRM butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 63.60%), 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 CTRM butterfly?
- The breakeven for the CTRM butterfly 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 CTRM market-implied 1-standard-deviation expected move is approximately 18.23%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on CTRM?
- Butterflies on CTRM are pinning bets - traders use them when they expect CTRM to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
- How does current CTRM implied volatility affect this butterfly?
- CTRM ATM IV is at 63.60% with IV rank near 10.42%, 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.