How are NMM strangle max profit and max loss calculated?

Upside max profit is unbounded; downside max profit is bounded at the put strike minus the combined debit (reached at zero). Max loss equals the combined debit times 100 (reached anywhere between the two OTM strikes). Two breakevens at call-strike plus debit and put-strike minus debit. For the NMM strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 38.00%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$362.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a NMM strangle?

The breakeven for the NMM strangle priced on this page is roughly $63.88 and $78.63 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 strangle?

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 Strangle 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 strangle on NMM?

A long strangle buys an OTM call and an OTM put at offset strikes, cheaper than a straddle but requiring a larger underlying move to profit since both wings start out-of-the-money.

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 strangle 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 strangle 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 strangle setup

The NMM strangle 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)
Buy 1	Call	$75.00	$1.95
Buy 1	Put	$67.50	$1.68

NMM strangle risk and reward

Net Premium / Debit: -$362.50
Max Profit (per contract): Unbounded
Max Loss (per contract): -$362.50
Breakeven(s): $63.88, $78.63
Risk / Reward Ratio: Unbounded

Upside max profit is unbounded; downside max profit is bounded at the put strike minus the combined debit (reached at zero). Max loss equals the combined debit times 100 (reached anywhere between the two OTM strikes). Two breakevens at call-strike plus debit and put-strike minus debit.

NMM strangle payoff curve

Modeled P&L at expiration across a range of underlying prices for the strangle 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%	+$6,386.50
$15.77	-77.9%	+$4,810.57
$31.53	-55.8%	+$3,234.64
$47.29	-33.7%	+$1,658.71
$63.05	-11.5%	+$82.78
$78.81	+10.6%	+$18.15
$94.57	+32.7%	+$1,594.08
$110.33	+54.8%	+$3,170.01
$126.08	+76.9%	+$4,745.94
$141.84	+99.0%	+$6,321.87

When traders use strangle on NMM

Strangles on NMM are the cheaper cousin of the straddle - traders use them when they want a large directional move but are willing to give up the inner-strike sensitivity in exchange for a lower up-front debit on the NMM chain.

NMM thesis for this strangle

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 strangle is the OTM cousin of the straddle: lower up-front cost but the underlying has to travel further past either OTM strike before the position turns profitable at expiration. Current NMM IV rank near 46.66% is mid-range against its 1-year distribution, so the IV signal is neutral; the strangle 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 strangle positions are structurally neutral / high-volatility (long premium, OTM); 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 strangle on NMM?: A strangle on NMM is the strangle strategy applied to NMM (stock). The strategy is structurally neutral / high-volatility (long premium, OTM): A long strangle buys an OTM call and an OTM put at offset strikes, cheaper than a straddle but requiring a larger underlying move to profit since both wings start out-of-the-money. 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 strangle max profit and max loss calculated?: Upside max profit is unbounded; downside max profit is bounded at the put strike minus the combined debit (reached at zero). Max loss equals the combined debit times 100 (reached anywhere between the two OTM strikes). Two breakevens at call-strike plus debit and put-strike minus debit. For the NMM strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 38.00%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$362.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a NMM strangle?: The breakeven for the NMM strangle priced on this page is roughly $63.88 and $78.63 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 strangle on NMM?: Strangles on NMM are the cheaper cousin of the straddle - traders use them when they want a large directional move but are willing to give up the inner-strike sensitivity in exchange for a lower up-front debit on the NMM chain.
How does current NMM implied volatility affect this strangle?: 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.