SUN Bear Put Spread Strategy
SUN (Sunoco LP), in the Energy sector, (Oil & Gas Refining & Marketing industry), listed on NYSE.
Sunoco LP, together with its subsidiaries, distributes and retails motor fuels in the United States. It operates in two segments, Fuel Distribution and Marketing, and All Other. The Fuel Distribution and Marketing segment purchases motor fuel from independent refiners and oil companies and supplies it to independently operated dealer stations, distributors and other consumer of motor fuel, and partnership operated stations, as well as to commission agent locations. The All Other segment operates retail stores that offer motor fuel, merchandise, foodservice, and other services that include credit card processing, car washes, lottery, automated teller machines, money orders, prepaid phone cards, and wireless services. It also leases and subleases real estate properties; and operates terminal facilities on the Hawaiian Islands. As of December 31, 2021, the company operated 78 retail stores in Hawaii and New Jersey.
SUN (Sunoco LP) trades in the Energy sector, specifically Oil & Gas Refining & Marketing, with a market capitalization of approximately $9.56B, a trailing P/E of 11.47, a beta of 0.47 versus the broader market, a 52-week range of 47.98-70, average daily share volume of 526K, a public-listing history dating back to 2012, approximately 3K full-time employees. These structural characteristics shape how SUN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.47 indicates SUN 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 11.47 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. SUN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a bear put spread on SUN?
A bear put spread buys an at-the-money put and sells an out-of-the-money put at a lower strike for defined risk and defined reward bounded by the strike width.
Current SUN snapshot
As of May 15, 2026, spot at $71.18, ATM IV 23.00%, IV rank 3.17%, expected move 6.59%. The bear put spread on SUN 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 bear put spread structure on SUN specifically: SUN IV at 23.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a SUN bear put spread, with a market-implied 1-standard-deviation move of approximately 6.59% (roughly $4.69 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 SUN expiries trade a higher absolute premium for lower per-day decay. Position sizing on SUN should anchor to the underlying notional of $71.18 per share and to the trader's directional view on SUN stock.
SUN bear put spread setup
The SUN bear put spread below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With SUN near $71.18, the first option leg uses a $70.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SUN 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 SUN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $70.00 | $1.43 |
| Sell 1 | Put | $67.50 | $0.95 |
SUN bear put spread risk and reward
- Net Premium / Debit
- -$47.50
- Max Profit (per contract)
- $202.50
- Max Loss (per contract)
- -$47.50
- Breakeven(s)
- $69.55
- Risk / Reward Ratio
- 4.263
Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-put strike minus net debit.
SUN bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on SUN. 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% | +$202.50 |
| $15.75 | -77.9% | +$202.50 |
| $31.48 | -55.8% | +$202.50 |
| $47.22 | -33.7% | +$202.50 |
| $62.96 | -11.5% | +$202.50 |
| $78.70 | +10.6% | -$47.50 |
| $94.43 | +32.7% | -$47.50 |
| $110.17 | +54.8% | -$47.50 |
| $125.91 | +76.9% | -$47.50 |
| $141.64 | +99.0% | -$47.50 |
When traders use bear put spread on SUN
Bear put spreads on SUN reduce the cost of a bearish SUN stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
SUN thesis for this bear put spread
The market-implied 1-standard-deviation range for SUN extends from approximately $66.49 on the downside to $75.87 on the upside. A SUN bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on SUN, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current SUN IV rank near 3.17% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on SUN at 23.00%. As a Energy name, SUN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SUN-specific events.
SUN bear put spread positions are structurally moderately bearish; 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. SUN positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SUN alongside the broader basket even when SUN-specific fundamentals are unchanged. Long-premium structures like a bear put spread on SUN 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 SUN chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on SUN?
- A bear put spread on SUN is the bear put spread strategy applied to SUN (stock). The strategy is structurally moderately bearish: A bear put spread buys an at-the-money put and sells an out-of-the-money put at a lower strike for defined risk and defined reward bounded by the strike width. With SUN stock trading near $71.18, the strikes shown on this page are snapped to the nearest listed SUN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SUN bear put spread max profit and max loss calculated?
- Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-put strike minus net debit. For the SUN bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 23.00%), the computed maximum profit is $202.50 per contract and the computed maximum loss is -$47.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SUN bear put spread?
- The breakeven for the SUN bear put spread priced on this page is roughly $69.55 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 SUN market-implied 1-standard-deviation expected move is approximately 6.59%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a bear put spread on SUN?
- Bear put spreads on SUN reduce the cost of a bearish SUN stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
- How does current SUN implied volatility affect this bear put spread?
- SUN ATM IV is at 23.00% with IV rank near 3.17%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.