DK Long Call 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 long call on DK?
A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration.
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 long call 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 long call structure on DK specifically: DK IV at 61.00% 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 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 long call setup
The DK long call 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 $45.00 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) |
|---|---|---|---|
| Buy 1 | Call | $45.00 | $4.25 |
DK long call risk and reward
- Net Premium / Debit
- -$425.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$425.00
- Breakeven(s)
- $49.25
- Risk / Reward Ratio
- Unbounded
Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium.
DK long call payoff curve
Modeled P&L at expiration across a range of underlying prices for the long call 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% | -$425.00 |
| $9.93 | -77.9% | -$425.00 |
| $19.86 | -55.8% | -$425.00 |
| $29.78 | -33.7% | -$425.00 |
| $39.71 | -11.5% | -$425.00 |
| $49.63 | +10.6% | +$38.16 |
| $59.56 | +32.7% | +$1,030.59 |
| $69.48 | +54.8% | +$2,023.03 |
| $79.40 | +76.9% | +$3,015.46 |
| $89.33 | +99.0% | +$4,007.89 |
When traders use long call on DK
Long calls on DK express a bullish thesis with defined risk; traders use them ahead of DK catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
DK thesis for this long call
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 long call expresses a directional view that the underlying closes above the strike plus premium at expiration, ideally with implied volatility holding or expanding to preserve extrinsic value through the hold period. Current DK IV rank near 46.54% is mid-range against its 1-year distribution, so the IV signal is neutral; the long call 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 long call positions are structurally 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. 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. Long-premium structures like a long call on DK are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current DK chain quotes before placing a trade.
Frequently asked questions
- What is a long call on DK?
- A long call on DK is the long call strategy applied to DK (stock). The strategy is structurally bullish: A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration. 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 long call max profit and max loss calculated?
- Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium. For the DK long call priced from the end-of-day chain at a 30-day expiry (ATM IV 61.00%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$425.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DK long call?
- The breakeven for the DK long call priced on this page is roughly $49.25 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 long call on DK?
- Long calls on DK express a bullish thesis with defined risk; traders use them ahead of DK catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
- How does current DK implied volatility affect this long call?
- 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.