NMG Iron Condor Strategy
NMG (Nouveau Monde Graphite Inc.), in the Basic Materials sector, (Industrial Materials industry), listed on NYSE.
Nouveau Monde Graphite Inc. engages in the acquisition, exploration, development, and evaluation of mineral properties in Canada. It primarily explores for graphite. The company's flagship project is the Matawinie property that includes 392 mining claims covering an area of 21,750 hectares situated to the north of Montreal, Quebec. It also engages in the real estate and trading businesses. The company was formerly known as Nouveau Monde Mining Enterprises Inc. and changed its name to Nouveau Monde Graphite Inc. in February 2017. Nouveau Monde Graphite Inc. was founded in 2011 and is headquartered in Saint-Michel-des-Saints, Canada.
NMG (Nouveau Monde Graphite Inc.) trades in the Basic Materials sector, specifically Industrial Materials, with a market capitalization of approximately $312.0M, a beta of 0.90 versus the broader market, a 52-week range of 1.6-6.06, average daily share volume of 1.1M, a public-listing history dating back to 2021, approximately 113 full-time employees. These structural characteristics shape how NMG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.90 places NMG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a iron condor on NMG?
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 NMG snapshot
As of May 15, 2026, spot at $1.90, ATM IV 267.30%, IV rank 74.93%, expected move 76.63%. The iron condor on NMG 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 NMG specifically: NMG IV at 267.30% is rich versus its 1-year range, which favors premium-selling structures like a NMG iron condor, with a market-implied 1-standard-deviation move of approximately 76.63% (roughly $1.46 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 NMG expiries trade a higher absolute premium for lower per-day decay. Position sizing on NMG should anchor to the underlying notional of $1.90 per share and to the trader's directional view on NMG stock.
NMG iron condor setup
The NMG 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 NMG near $1.90, the first option leg uses a $1.99 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NMG 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 NMG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $1.99 | N/A |
| Buy 1 | Call | $2.09 | N/A |
| Sell 1 | Put | $1.81 | N/A |
| Buy 1 | Put | $1.71 | N/A |
NMG iron condor 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 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.
NMG iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on NMG. 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 iron condor on NMG
Iron condors on NMG are a delta-neutral premium-collection structure that profits if NMG stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
NMG thesis for this iron condor
The market-implied 1-standard-deviation range for NMG extends from approximately $0.44 on the downside to $3.36 on the upside. A NMG iron condor is a delta-neutral premium-collection structure that pays off when NMG 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 NMG IV rank near 74.93% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on NMG at 267.30%. As a Basic Materials name, NMG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NMG-specific events.
NMG 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. NMG positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NMG alongside the broader basket even when NMG-specific fundamentals are unchanged. Short-premium structures like a iron condor on NMG carry tail risk when realized volatility exceeds the implied move; review historical NMG earnings reactions and macro stress periods before sizing. Always rebuild the position from current NMG chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on NMG?
- A iron condor on NMG is the iron condor strategy applied to NMG (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 NMG stock trading near $1.90, the strikes shown on this page are snapped to the nearest listed NMG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NMG 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 NMG iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 267.30%), 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 NMG iron condor?
- The breakeven for the NMG iron condor 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 NMG market-implied 1-standard-deviation expected move is approximately 76.63%; 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 NMG?
- Iron condors on NMG are a delta-neutral premium-collection structure that profits if NMG stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current NMG implied volatility affect this iron condor?
- NMG ATM IV is at 267.30% with IV rank near 74.93%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.