How are SUN butterfly max profit and max loss calculated?

Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit. For the SUN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 23.00%), the computed maximum profit is $271.30 per contract and the computed maximum loss is -$217.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SUN butterfly?

The breakeven for the SUN butterfly priced on this page is roughly $72.83 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.

How does current SUN implied volatility affect this butterfly?

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.

SUN Butterfly 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 butterfly on SUN?

A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration.

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 butterfly 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 butterfly 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 butterfly, 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 butterfly setup

The SUN butterfly 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 $67.50 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	Call	$67.50	$4.30
Sell 2	Call	$70.00	$2.58
Buy 1	Call	$75.00	$0.53

SUN butterfly risk and reward

Net Premium / Debit: +$32.50
Max Profit (per contract): $271.30
Max Loss (per contract): -$217.50
Breakeven(s): $72.83
Risk / Reward Ratio: 1.247

Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit.

SUN butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly 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%	+$32.50
$15.75	-77.9%	+$32.50
$31.48	-55.8%	+$32.50
$47.22	-33.7%	+$32.50
$62.96	-11.5%	+$32.50
$78.70	+10.6%	-$217.50
$94.43	+32.7%	-$217.50
$110.17	+54.8%	-$217.50
$125.91	+76.9%	-$217.50
$141.64	+99.0%	-$217.50

When traders use butterfly on SUN

Butterflies on SUN are pinning bets - traders use them when they expect SUN to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.

SUN thesis for this butterfly

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 long call butterfly is a pinning play: it pays maximum at the middle strike if SUN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the 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 butterfly positions are structurally neutral / pin (limited-risk, limited-reward); 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. Always rebuild the position from current SUN chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on SUN?: A butterfly on SUN is the butterfly strategy applied to SUN (stock). The strategy is structurally neutral / pin (limited-risk, limited-reward): A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration. 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 butterfly max profit and max loss calculated?: Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit. For the SUN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 23.00%), the computed maximum profit is $271.30 per contract and the computed maximum loss is -$217.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SUN butterfly?: The breakeven for the SUN butterfly priced on this page is roughly $72.83 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 butterfly on SUN?: Butterflies on SUN are pinning bets - traders use them when they expect SUN to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
How does current SUN implied volatility affect this butterfly?: 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.