How are NMM 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 NMM iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 38.00%), the computed maximum profit is $37.50 per contract and the computed maximum loss is -$212.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a NMM iron condor?

The breakeven for the NMM iron condor priced on this page is roughly $67.13 and $75.38 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 iron condor?

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 Iron Condor 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 iron condor on NMM?

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 NMM snapshot

As of May 15, 2026, spot at $71.28, ATM IV 38.00%, IV rank 46.66%, expected move 10.89%. The iron condor 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 iron condor structure on NMM specifically: NMM IV at 38.00% is mid-range versus its 1-year history, so the credit collected on a NMM iron condor 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 iron condor setup

The NMM 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 NMM near $71.28, the first option leg uses a $75.00 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 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	Call	$75.00	$1.95
Buy 1	Call	$77.50	$1.68
Sell 1	Put	$67.50	$1.68
Buy 1	Put	$65.00	$1.58

NMM iron condor risk and reward

Net Premium / Debit: +$37.50
Max Profit (per contract): $37.50
Max Loss (per contract): -$212.50
Breakeven(s): $67.13, $75.38
Risk / Reward Ratio: 0.176

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.

NMM iron condor payoff curve

Modeled P&L at expiration across a range of underlying prices for the iron condor 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%	-$212.50
$15.77	-77.9%	-$212.50
$31.53	-55.8%	-$212.50
$47.29	-33.7%	-$212.50
$63.05	-11.5%	-$212.50
$78.81	+10.6%	-$212.50
$94.57	+32.7%	-$212.50
$110.33	+54.8%	-$212.50
$126.08	+76.9%	-$212.50
$141.84	+99.0%	-$212.50

When traders use iron condor on NMM

Iron condors on NMM are a delta-neutral premium-collection structure that profits if NMM stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.

NMM thesis for this iron condor

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 iron condor is a delta-neutral premium-collection structure that pays off when NMM 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 NMM IV rank near 46.66% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor 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 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. 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 iron condor 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 iron condor on NMM?: A iron condor on NMM is the iron condor strategy applied to NMM (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 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 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 NMM iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 38.00%), the computed maximum profit is $37.50 per contract and the computed maximum loss is -$212.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a NMM iron condor?: The breakeven for the NMM iron condor priced on this page is roughly $67.13 and $75.38 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 iron condor on NMM?: Iron condors on NMM are a delta-neutral premium-collection structure that profits if NMM stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
How does current NMM implied volatility affect this iron condor?: 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.