DKL Iron Condor Strategy
DKL (Delek Logistics Partners, LP), in the Energy sector, (Oil & Gas Midstream industry), listed on NYSE.
Delek Logistics Partners, LP owns and operates logistics and marketing assets for crude oil, and intermediate and refined products in the United States. It operates through three segments: Pipelines and Transportation, Wholesale Marketing and Terminalling, and Investment in Pipeline Joint Ventures. The Pipelines and Transportation segment includes pipelines, trucks, and ancillary assets that provide crude oil gathering, crude oil intermediate and refined products transportation, and storage services primarily in support of the Tyler, El Dorado, and Big Spring refineries, as well as offers crude oil and other products transportation services to third parties. This segment operates approximately 400 miles of crude oil transportation pipelines; 450 miles of refined product pipelines; and approximately 900 miles of crude oil gathering, and intermediate and refined products storage tanks with an aggregate of approximately 10.2 million barrels of active shell capacity. The Wholesale Marketing and Terminalling segment provides wholesale marketing, transporting, storage, and terminalling services related to refined products to independent third parties. The Investments in Pipeline Joint Ventures Segment owns a portion of three joint ventures that have constructed separate crude oil pipeline systems and related ancillary assets, which serves third parties and subsidiaries.
DKL (Delek Logistics Partners, LP) trades in the Energy sector, specifically Oil & Gas Midstream, with a market capitalization of approximately $2.71B, a trailing P/E of 16.08, a beta of 0.48 versus the broader market, a 52-week range of 40.1-55.89, average daily share volume of 64K, a public-listing history dating back to 2012. These structural characteristics shape how DKL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.48 indicates DKL has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. DKL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on DKL?
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 DKL snapshot
As of May 15, 2026, spot at $52.01, ATM IV 28.40%, IV rank 36.74%, expected move 8.14%. The iron condor on DKL 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 DKL specifically: DKL IV at 28.40% is mid-range versus its 1-year history, so the credit collected on a DKL iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 8.14% (roughly $4.23 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 DKL expiries trade a higher absolute premium for lower per-day decay. Position sizing on DKL should anchor to the underlying notional of $52.01 per share and to the trader's directional view on DKL stock.
DKL iron condor setup
The DKL 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 DKL near $52.01, the first option leg uses a $54.61 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DKL 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 DKL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $54.61 | N/A |
| Buy 1 | Call | $57.21 | N/A |
| Sell 1 | Put | $49.41 | N/A |
| Buy 1 | Put | $46.81 | N/A |
DKL iron condor risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
DKL iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on DKL. 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.
When traders use iron condor on DKL
Iron condors on DKL are a delta-neutral premium-collection structure that profits if DKL stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
DKL thesis for this iron condor
The market-implied 1-standard-deviation range for DKL extends from approximately $47.78 on the downside to $56.24 on the upside. A DKL iron condor is a delta-neutral premium-collection structure that pays off when DKL 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 DKL IV rank near 36.74% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on DKL should anchor more to the directional view and the expected-move geometry. As a Energy name, DKL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DKL-specific events.
DKL 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. DKL positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DKL alongside the broader basket even when DKL-specific fundamentals are unchanged. Short-premium structures like a iron condor on DKL carry tail risk when realized volatility exceeds the implied move; review historical DKL earnings reactions and macro stress periods before sizing. Always rebuild the position from current DKL chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on DKL?
- A iron condor on DKL is the iron condor strategy applied to DKL (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 DKL stock trading near $52.01, the strikes shown on this page are snapped to the nearest listed DKL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DKL 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 DKL iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 28.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DKL iron condor?
- The breakeven for the DKL iron condor priced on this page is no defined breakeven on the modeled curve 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 DKL market-implied 1-standard-deviation expected move is approximately 8.14%; 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 DKL?
- Iron condors on DKL are a delta-neutral premium-collection structure that profits if DKL stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current DKL implied volatility affect this iron condor?
- DKL ATM IV is at 28.40% with IV rank near 36.74%, 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.