DK Iron Condor Strategy
DK (Delek US Holdings, Inc.), in the Energy sector, (Oil & Gas Refining & Marketing industry), listed on NYSE.
Delek US Holdings, Inc. engages in the integrated downstream energy business in the United States. The company operates through three segments: Refining, Logistics, and Retail. The Refining segment processes crude oil and other feedstock for the manufacture of various grades of gasoline, diesel fuel, aviation fuel, asphalt, and other petroleum-based products that are distributed through owned and third-party product terminal. It owns and operates four independent refineries located in Tyler, Texas; El Dorado, Arkansas; Big Spring, Texas; and Krotz Springs, Louisiana, as well as three biodiesel facilities in Crossett, Arkansas, Cleburne, Texas, and New Albany. The Logistics segment gathers, transports, and stores crude oil, intermediate, and refined products; and markets, distributes, transports, and stores refined products for third parties. It owns or leases capacity on approximately 400 miles of crude oil transportation pipelines, approximately 450 miles of refined product pipelines, an approximately 900-mile crude oil gathering system, and associated crude oil storage tanks with an aggregate of approximately 10.2 million barrels of active shell capacity; and owns and operates ten light product distribution terminals, as well as markets light products using third-party terminals.
DK (Delek US Holdings, Inc.) trades in the Energy sector, specifically Oil & Gas Refining & Marketing, with a market capitalization of approximately $2.69B, a beta of 0.61 versus the broader market, a 52-week range of 16.76-49.5, average daily share volume of 1.5M, a public-listing history dating back to 2006, approximately 2K full-time employees. These structural characteristics shape how DK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.61 indicates DK has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. DK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on DK?
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 DK snapshot
As of May 15, 2026, spot at $44.89, ATM IV 61.00%, IV rank 46.54%, expected move 17.49%. The iron condor on DK 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 63-day expiry.
Why this iron condor structure on DK specifically: DK IV at 61.00% is mid-range versus its 1-year history, so the credit collected on a DK iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 17.49% (roughly $7.85 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DK expiries trade a higher absolute premium for lower per-day decay. Position sizing on DK should anchor to the underlying notional of $44.89 per share and to the trader's directional view on DK stock.
DK iron condor setup
The DK 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 DK near $44.89, the first option leg uses a $47.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DK chain at a 63-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 DK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $47.50 | $3.80 |
| Buy 1 | Call | $50.00 | $2.78 |
| Sell 1 | Put | $42.50 | $3.15 |
| Buy 1 | Put | $40.00 | $2.25 |
DK iron condor risk and reward
- Net Premium / Debit
- +$192.50
- Max Profit (per contract)
- $192.50
- Max Loss (per contract)
- -$57.50
- Breakeven(s)
- $40.58, $49.43
- Risk / Reward Ratio
- 3.348
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.
DK iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on DK. 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% | -$57.50 |
| $9.93 | -77.9% | -$57.50 |
| $19.86 | -55.8% | -$57.50 |
| $29.78 | -33.7% | -$57.50 |
| $39.71 | -11.5% | -$57.50 |
| $49.63 | +10.6% | -$20.66 |
| $59.56 | +32.7% | -$57.50 |
| $69.48 | +54.8% | -$57.50 |
| $79.40 | +76.9% | -$57.50 |
| $89.33 | +99.0% | -$57.50 |
When traders use iron condor on DK
Iron condors on DK are a delta-neutral premium-collection structure that profits if DK stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
DK thesis for this iron condor
The market-implied 1-standard-deviation range for DK extends from approximately $37.04 on the downside to $52.74 on the upside. A DK iron condor is a delta-neutral premium-collection structure that pays off when DK 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 DK IV rank near 46.54% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on DK should anchor more to the directional view and the expected-move geometry. As a Energy name, DK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DK-specific events.
DK 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. DK positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DK alongside the broader basket even when DK-specific fundamentals are unchanged. Short-premium structures like a iron condor on DK carry tail risk when realized volatility exceeds the implied move; review historical DK earnings reactions and macro stress periods before sizing. Always rebuild the position from current DK chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on DK?
- A iron condor on DK is the iron condor strategy applied to DK (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 DK stock trading near $44.89, the strikes shown on this page are snapped to the nearest listed DK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DK 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 DK iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 61.00%), the computed maximum profit is $192.50 per contract and the computed maximum loss is -$57.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DK iron condor?
- The breakeven for the DK iron condor priced on this page is roughly $40.58 and $49.43 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 DK market-implied 1-standard-deviation expected move is approximately 17.49%; 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 DK?
- Iron condors on DK are a delta-neutral premium-collection structure that profits if DK stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current DK implied volatility affect this iron condor?
- DK ATM IV is at 61.00% with IV rank near 46.54%, 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.