How are NMM 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 NMM butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 38.00%), the computed maximum profit is $315.95 per contract and the computed maximum loss is -$170.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a NMM butterfly?

The breakeven for the NMM butterfly priced on this page is roughly $69.20 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 NMM market-implied 1-standard-deviation expected move is approximately 10.89%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current NMM implied volatility affect this butterfly?

NMM ATM IV is at 38.00% with IV rank near 46.66%, 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.

NMM Butterfly Strategy

NMM (Navios Maritime Partners L.P.), in the Industrials sector, (Marine Shipping industry), listed on NYSE.

Navios Maritime Partners L.P. owns and operates dry cargo vessels in Asia, Europe, North America, and Australia. The company offers seaborne transportation services for a range of liquid and dry cargo commodities, including crude oil, refined petroleum, chemicals, iron ore, coal, grain, fertilizer, and containers, as well as provides its vessels under short, medium, and longer-term charters. It operates a fleet of 26 Panamax vessels, 24 Capesize vessels, four Ultra-Handymax vessels, 47 containerships, and 45 tankers. Olympos Maritime Ltd. serves as the general partner of Navios Maritime Partners L.P. The company was founded in 2007 and is based in Monaco.

NMM (Navios Maritime Partners L.P.) trades in the Industrials sector, specifically Marine Shipping, with a market capitalization of approximately $2.03B, a trailing P/E of 7.44, a beta of 1.06 versus the broader market, a 52-week range of 36.62-77.9, average daily share volume of 181K, a public-listing history dating back to 2007, approximately 186 full-time employees. These structural characteristics shape how NMM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.06 places NMM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 7.44 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. NMM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on NMM?

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 NMM snapshot

As of May 15, 2026, spot at $71.28, ATM IV 38.00%, IV rank 46.66%, expected move 10.89%. The butterfly on NMM 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 butterfly structure on NMM specifically: NMM IV at 38.00% 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 10.89% (roughly $7.77 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 NMM expiries trade a higher absolute premium for lower per-day decay. Position sizing on NMM should anchor to the underlying notional of $71.28 per share and to the trader's directional view on NMM stock.

NMM butterfly setup

The NMM 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 NMM near $71.28, the first option leg uses a $67.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NMM 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 NMM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$67.50	$5.75
Sell 2	Call	$72.50	$3.00
Buy 1	Call	$75.00	$1.95

NMM butterfly risk and reward

Net Premium / Debit: -$170.00
Max Profit (per contract): $315.95
Max Loss (per contract): -$170.00
Breakeven(s): $69.20
Risk / Reward Ratio: 1.859

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.

NMM butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on NMM. 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	-100.0%	-$170.00
$15.77	-77.9%	-$170.00
$31.53	-55.8%	-$170.00
$47.29	-33.7%	-$170.00
$63.05	-11.5%	-$170.00
$78.81	+10.6%	+$80.00
$94.57	+32.7%	+$80.00
$110.33	+54.8%	+$80.00
$126.08	+76.9%	+$80.00
$141.84	+99.0%	+$80.00

When traders use butterfly on NMM

Butterflies on NMM are pinning bets - traders use them when they expect NMM 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.

NMM thesis for this butterfly

The market-implied 1-standard-deviation range for NMM extends from approximately $63.51 on the downside to $79.05 on the upside. A NMM long call butterfly is a pinning play: it pays maximum at the middle strike if NMM settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current NMM IV rank near 46.66% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on NMM should anchor more to the directional view and the expected-move geometry. As a Industrials name, NMM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NMM-specific events.

NMM 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. NMM positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NMM alongside the broader basket even when NMM-specific fundamentals are unchanged. Always rebuild the position from current NMM chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on NMM?: A butterfly on NMM is the butterfly strategy applied to NMM (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 NMM stock trading near $71.28, the strikes shown on this page are snapped to the nearest listed NMM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are NMM 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 NMM butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 38.00%), the computed maximum profit is $315.95 per contract and the computed maximum loss is -$170.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a NMM butterfly?: The breakeven for the NMM butterfly priced on this page is roughly $69.20 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 NMM market-implied 1-standard-deviation expected move is approximately 10.89%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on NMM?: Butterflies on NMM are pinning bets - traders use them when they expect NMM 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 NMM implied volatility affect this butterfly?: NMM ATM IV is at 38.00% with IV rank near 46.66%, 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.