NMM Cash-Secured Put Strategy
NMM (Navios Maritime Partners L.P.), in the Industrials sector, (Marine Shipping industry), listed on NYSE.
Navios Maritime Partners L.P. is a company that manages and possesses vessels specialized in dry cargo, delivering vital marine shipping solutions across global markets including Asia, Europe, North America, and Australia. The firm facilitates the ocean-borne transport of a diverse array of liquid and dry bulk materials, encompassing everything from crude oil, refined petroleum products, and chemicals to iron ore, coal, grain, fertilizers, and containerized freight. Its substantial fleet consists of 26 Panamax carriers, 24 Capesize ships, four Ultra-Handymax vessels, 47 containerships, and 45 tankers, which are operated under various short, medium, and long-term charter arrangements. Olympos Maritime Ltd. functions as the general partner for Navios Maritime Partners L.P., an entity that commenced operations in 2007 and maintains its principal offices in Monaco.
NMM (Navios Maritime Partners L.P.) trades in the Industrials sector, specifically Marine Shipping, with a market capitalization of approximately $2.56B, a trailing P/E of 5.85, a beta of 0.99 versus the broader market, a 52-week range of 43.02-95, average daily share volume of 140K, 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 0.99 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 5.85 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 cash-secured put on NMM?
A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike.
NMM snapshot
As of September 29, 2026, spot at $90.72, ATM IV 33.00%, IV rank 27.99%, expected move 9.46%. The cash-secured put on NMM below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 80-day expiry.
Why this cash-secured put structure on NMM specifically: NMM IV at 33.00% is on the cheap side of its 1-year range, which means a premium-selling NMM cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 9.46% (roughly $8.58 on the underlying). The 80-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 $90.72 per share and to the trader's directional view on NMM stock.
NMM cash-secured put setup
The NMM cash-secured put below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With NMM at $90.72 on that close, the first option leg uses a $85.00 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 80-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) |
|---|---|---|---|
| Sell 1 | Put | $85.00 | $3.60 |
NMM cash-secured put risk and reward
- Net Premium / Debit
- +$360.00
- Max Profit (per contract)
- $360.00
- Max Loss (per contract)
- -$8,139.00
- Breakeven(s)
- $81.40
- Risk / Reward Ratio
- 0.044
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
NMM cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put 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% | -$8,139.00 |
| $20.07 | -77.9% | -$6,133.24 |
| $40.13 | -55.8% | -$4,127.48 |
| $60.18 | -33.7% | -$2,121.72 |
| $80.24 | -11.6% | -$115.96 |
| $100.30 | +10.6% | +$360.00 |
| $120.36 | +32.7% | +$360.00 |
| $140.41 | +54.8% | +$360.00 |
| $160.47 | +76.9% | +$360.00 |
| $180.53 | +99.0% | +$360.00 |
When traders use cash-secured put on NMM
Cash-secured puts on NMM earn premium while a trader waits to acquire NMM stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning NMM.
NMM thesis for this cash-secured put
The market-implied 1-standard-deviation range for NMM extends from approximately $82.14 on the downside to $99.30 on the upside. A NMM cash-secured put lets a trader earn premium while waiting to acquire NMM at the strike price; the strategy is most attractive when the trader is comfortable holding the underlying at that level and IV is rich enough to compensate for the assignment risk. Current NMM IV rank near 27.99% 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 NMM at 33.00%. 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 cash-secured put positions are structurally neutral to slightly bullish; 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. Short-premium structures like a cash-secured put on NMM carry tail risk when realized volatility exceeds the implied move; review historical NMM earnings reactions and macro stress periods before sizing. Always rebuild the position from current NMM chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on NMM?
- A cash-secured put on NMM is the cash-secured put strategy applied to NMM (stock). The strategy is structurally neutral to slightly bullish: A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike. With NMM stock at $90.72 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed NMM chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are NMM cash-secured put max profit and max loss calculated?
- Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium. For the NMM cash-secured put priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 33.00%), the computed maximum profit is $360.00 per contract and the computed maximum loss is -$8,139.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NMM cash-secured put?
- The breakeven for the NMM cash-secured put priced on this page is roughly $81.40 at expiration, derived from the September 29, 2026 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 NMM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.46%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a cash-secured put on NMM?
- Cash-secured puts on NMM earn premium while a trader waits to acquire NMM stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning NMM.
- How does current NMM implied volatility affect this cash-secured put?
- NMM ATM IV is at 33.00% with IV rank near 27.99%, 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.