NMM Covered Call 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 covered call on NMM?
A covered call pairs long stock with a short out-of-the-money call, collecting premium and capping upside above the short strike in exchange for income.
NMM snapshot
As of September 29, 2026, spot at $90.72, ATM IV 33.00%, IV rank 27.99%, expected move 9.46%. The covered call 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 covered call 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 covered call 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 covered call setup
The NMM covered call 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 $95.00 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) |
|---|---|---|---|
| Buy 100 shares | Stock | $90.72 | long |
| Sell 1 | Call | $95.00 | $4.05 |
NMM covered call risk and reward
- Net Premium / Debit
- -$8,667.00
- Max Profit (per contract)
- $833.00
- Max Loss (per contract)
- -$8,666.00
- Breakeven(s)
- $86.67
- Risk / Reward Ratio
- 0.096
Max profit equals short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium.
NMM covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call 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% | -$8,666.00 |
| $20.07 | -77.9% | -$6,660.24 |
| $40.13 | -55.8% | -$4,654.48 |
| $60.18 | -33.7% | -$2,648.72 |
| $80.24 | -11.6% | -$642.96 |
| $100.30 | +10.6% | +$833.00 |
| $120.36 | +32.7% | +$833.00 |
| $140.41 | +54.8% | +$833.00 |
| $160.47 | +76.9% | +$833.00 |
| $180.53 | +99.0% | +$833.00 |
When traders use covered call on NMM
Covered calls on NMM are an income strategy run on existing NMM stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
NMM thesis for this covered call
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 covered call collects premium on an existing long NMM position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether NMM will breach that level within the expiration window. 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 covered call 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 covered call 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 covered call on NMM?
- A covered call on NMM is the covered call strategy applied to NMM (stock). The strategy is structurally neutral to slightly bullish: A covered call pairs long stock with a short out-of-the-money call, collecting premium and capping upside above the short strike in exchange for income. 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 covered call max profit and max loss calculated?
- Max profit equals short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium. For the NMM covered call priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 33.00%), the computed maximum profit is $833.00 per contract and the computed maximum loss is -$8,666.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NMM covered call?
- The breakeven for the NMM covered call priced on this page is roughly $86.67 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 covered call on NMM?
- Covered calls on NMM are an income strategy run on existing NMM stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
- How does current NMM implied volatility affect this covered call?
- 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.