CTRM Strangle Strategy
CTRM (Castor Maritime Inc.), in the Industrials sector, (Marine Shipping industry), listed on NASDAQ.
Castor Maritime Inc. provides shipping services worldwide. The company operates through three segments: Dry Bulk, Aframax/LR2 Tanker, and Handysize Tanker. It offers seaborne transportation services for dry bulk cargo; commodities, such as iron ore, coal, soybeans, etc.; and crude oil and refined petroleum products. As of December 31, 2021, the company owned and operated a fleet of 29 vessels primarily consisting of two Handysize tanker vessels, seven Aframax/LR2 tanker vessels, and 14 dry bulk vessels. Castor Maritime Inc. was incorporated in 2017 and is based in Limassol, Cyprus.
CTRM (Castor Maritime Inc.) trades in the Industrials sector, specifically Marine Shipping, with a market capitalization of approximately $18.8M, a trailing P/E of 0.98, a beta of 1.26 versus the broader market, a 52-week range of 1.66-2.654, average daily share volume of 54K, 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 1.26 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 0.98 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 strangle on CTRM?
A long strangle buys an OTM call and an OTM put at offset strikes, cheaper than a straddle but requiring a larger underlying move to profit since both wings start out-of-the-money.
Current CTRM snapshot
As of May 15, 2026, spot at $1.92, ATM IV 89.80%, IV rank 24.85%, expected move 25.74%. The strangle 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 34-day expiry.
Why this strangle structure on CTRM specifically: CTRM IV at 89.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a CTRM strangle, with a market-implied 1-standard-deviation move of approximately 25.74% (roughly $0.49 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 CTRM expiries trade a higher absolute premium for lower per-day decay. Position sizing on CTRM should anchor to the underlying notional of $1.92 per share and to the trader's directional view on CTRM stock.
CTRM strangle setup
The CTRM strangle 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 $1.92, the first option leg uses a $2.02 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 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 CTRM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $2.02 | N/A |
| Buy 1 | Put | $1.82 | N/A |
CTRM strangle 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 put strike minus the combined debit (reached at zero). Max loss equals the combined debit times 100 (reached anywhere between the two OTM strikes). Two breakevens at call-strike plus debit and put-strike minus debit.
CTRM strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle 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 strangle on CTRM
Strangles on CTRM are the cheaper cousin of the straddle - traders use them when they want a large directional move but are willing to give up the inner-strike sensitivity in exchange for a lower up-front debit on the CTRM chain.
CTRM thesis for this strangle
The market-implied 1-standard-deviation range for CTRM extends from approximately $1.43 on the downside to $2.41 on the upside. A CTRM long strangle is the OTM cousin of the straddle: lower up-front cost but the underlying has to travel further past either OTM strike before the position turns profitable at expiration. Current CTRM IV rank near 24.85% 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 89.80%. 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 strangle positions are structurally neutral / high-volatility (long premium, OTM); 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 strangle on CTRM?
- A strangle on CTRM is the strangle strategy applied to CTRM (stock). The strategy is structurally neutral / high-volatility (long premium, OTM): A long strangle buys an OTM call and an OTM put at offset strikes, cheaper than a straddle but requiring a larger underlying move to profit since both wings start out-of-the-money. With CTRM stock trading near $1.92, 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 strangle max profit and max loss calculated?
- Upside max profit is unbounded; downside max profit is bounded at the put strike minus the combined debit (reached at zero). Max loss equals the combined debit times 100 (reached anywhere between the two OTM strikes). Two breakevens at call-strike plus debit and put-strike minus debit. For the CTRM strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 89.80%), 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 strangle?
- The breakeven for the CTRM strangle 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 25.74%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on CTRM?
- Strangles on CTRM are the cheaper cousin of the straddle - traders use them when they want a large directional move but are willing to give up the inner-strike sensitivity in exchange for a lower up-front debit on the CTRM chain.
- How does current CTRM implied volatility affect this strangle?
- CTRM ATM IV is at 89.80% with IV rank near 24.85%, 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.