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. 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 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.
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 cash-secured put 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 cash-secured put structure on NMM specifically: NMM IV at 38.00% is mid-range versus its 1-year history, so the credit collected on a NMM cash-secured put sits in line with its long-run distribution, 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 cash-secured put setup
The NMM cash-secured put 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) |
|---|---|---|---|
| Sell 1 | Put | $67.50 | $1.68 |
NMM cash-secured put risk and reward
- Net Premium / Debit
- +$167.50
- Max Profit (per contract)
- $167.50
- Max Loss (per contract)
- -$6,581.50
- Breakeven(s)
- $65.83
- Risk / Reward Ratio
- 0.025
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% | -$6,581.50 |
| $15.77 | -77.9% | -$5,005.57 |
| $31.53 | -55.8% | -$3,429.64 |
| $47.29 | -33.7% | -$1,853.71 |
| $63.05 | -11.5% | -$277.78 |
| $78.81 | +10.6% | +$167.50 |
| $94.57 | +32.7% | +$167.50 |
| $110.33 | +54.8% | +$167.50 |
| $126.08 | +76.9% | +$167.50 |
| $141.84 | +99.0% | +$167.50 |
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 $63.51 on the downside to $79.05 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 46.66% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put 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 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 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 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 end-of-day chain at a 30-day expiry (ATM IV 38.00%), the computed maximum profit is $167.50 per contract and the computed maximum loss is -$6,581.50 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 $65.83 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 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 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.