SUN Cash-Secured Put 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 cash-secured put on SUN?
A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike.
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 cash-secured put 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 cash-secured put structure on SUN specifically: SUN IV at 23.00% is on the cheap side of its 1-year range, which means a premium-selling SUN cash-secured put collects less credit per unit of strike-width risk, 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 cash-secured put setup
The SUN cash-secured put 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) |
|---|---|---|---|
| Sell 1 | Put | $67.50 | $0.95 |
SUN cash-secured put risk and reward
- Net Premium / Debit
- +$95.00
- Max Profit (per contract)
- $95.00
- Max Loss (per contract)
- -$6,654.00
- Breakeven(s)
- $66.55
- Risk / Reward Ratio
- 0.014
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
SUN cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put 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% | -$6,654.00 |
| $15.75 | -77.9% | -$5,080.28 |
| $31.48 | -55.8% | -$3,506.56 |
| $47.22 | -33.7% | -$1,932.84 |
| $62.96 | -11.5% | -$359.13 |
| $78.70 | +10.6% | +$95.00 |
| $94.43 | +32.7% | +$95.00 |
| $110.17 | +54.8% | +$95.00 |
| $125.91 | +76.9% | +$95.00 |
| $141.64 | +99.0% | +$95.00 |
When traders use cash-secured put on SUN
Cash-secured puts on SUN earn premium while a trader waits to acquire SUN stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning SUN.
SUN thesis for this cash-secured put
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 cash-secured put lets a trader earn premium while waiting to acquire SUN at the strike price; the strategy is most attractive when the trader is comfortable holding the underlying at that level and IV is rich enough to compensate for the assignment risk. 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 cash-secured put positions are structurally neutral to slightly 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. 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. Short-premium structures like a cash-secured put on SUN carry tail risk when realized volatility exceeds the implied move; review historical SUN earnings reactions and macro stress periods before sizing. Always rebuild the position from current SUN chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on SUN?
- A cash-secured put on SUN is the cash-secured put strategy applied to SUN (stock). The strategy is structurally neutral to slightly bullish: A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike. 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 cash-secured put max profit and max loss calculated?
- Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium. For the SUN cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 23.00%), the computed maximum profit is $95.00 per contract and the computed maximum loss is -$6,654.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SUN cash-secured put?
- The breakeven for the SUN cash-secured put priced on this page is roughly $66.55 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 cash-secured put on SUN?
- Cash-secured puts on SUN earn premium while a trader waits to acquire SUN stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning SUN.
- How does current SUN implied volatility affect this cash-secured put?
- 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.