SGU Iron Condor Strategy
SGU (Star Group, L.P.), in the Energy sector, (Oil & Gas Refining & Marketing industry), listed on NYSE.
Star Group, L.P. sells home heating and air conditioning products and services to residential and commercial home heating oil and propane customers in the United States. It also sells diesel fuel, gasoline, and home heating oil on a delivery only basis, as well as provide plumbing services; and installs maintains, and repairs heating and air conditioning equipment. As of September 30, 2021, the company served approximately 422,200 full service residential and commercial home heating oil and propane customers and 71,100 customers on a delivery only basis. It also sells gasoline and diesel fuel to approximately 26,700 customers. Kestrel Heat, LLC operates as the general partner of the company. The company was formerly known as Star Gas Partners, L.P. and changed its name to Star Group, L.P. in October 2017.
SGU (Star Group, L.P.) trades in the Energy sector, specifically Oil & Gas Refining & Marketing, with a market capitalization of approximately $419.6M, a trailing P/E of 4.01, a beta of 0.33 versus the broader market, a 52-week range of 11.31-13.53, average daily share volume of 25K, a public-listing history dating back to 1995, approximately 3K full-time employees. These structural characteristics shape how SGU stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.33 indicates SGU has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 4.01 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. SGU pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on SGU?
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 SGU snapshot
As of May 15, 2026, spot at $12.70, ATM IV 406.10%, IV rank 82.11%, expected move 116.42%. The iron condor on SGU 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 SGU specifically: SGU IV at 406.10% is rich versus its 1-year range, which favors premium-selling structures like a SGU iron condor, with a market-implied 1-standard-deviation move of approximately 116.42% (roughly $14.79 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 SGU expiries trade a higher absolute premium for lower per-day decay. Position sizing on SGU should anchor to the underlying notional of $12.70 per share and to the trader's directional view on SGU stock.
SGU iron condor setup
The SGU 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 SGU near $12.70, the first option leg uses a $13.33 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SGU 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 SGU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $13.33 | N/A |
| Buy 1 | Call | $13.97 | N/A |
| Sell 1 | Put | $12.07 | N/A |
| Buy 1 | Put | $11.43 | N/A |
SGU 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.
SGU iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on SGU. 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 SGU
Iron condors on SGU are a delta-neutral premium-collection structure that profits if SGU stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
SGU thesis for this iron condor
The market-implied 1-standard-deviation range for SGU extends from approximately $-2.09 on the downside to $27.49 on the upside. A SGU iron condor is a delta-neutral premium-collection structure that pays off when SGU 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 SGU IV rank near 82.11% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on SGU at 406.10%. As a Energy name, SGU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SGU-specific events.
SGU 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. SGU positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SGU alongside the broader basket even when SGU-specific fundamentals are unchanged. Short-premium structures like a iron condor on SGU carry tail risk when realized volatility exceeds the implied move; review historical SGU earnings reactions and macro stress periods before sizing. Always rebuild the position from current SGU chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on SGU?
- A iron condor on SGU is the iron condor strategy applied to SGU (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 SGU stock trading near $12.70, the strikes shown on this page are snapped to the nearest listed SGU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SGU 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 SGU iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 406.10%), 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 SGU iron condor?
- The breakeven for the SGU 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 SGU market-implied 1-standard-deviation expected move is approximately 116.42%; 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 SGU?
- Iron condors on SGU are a delta-neutral premium-collection structure that profits if SGU stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current SGU implied volatility affect this iron condor?
- SGU ATM IV is at 406.10% with IV rank near 82.11%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.