SUN Long Call 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 long call on SUN?
A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium 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 long call 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 long call 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 long call, 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 long call setup
The SUN long call 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 | Call | $70.00 | $2.58 |
SUN long call risk and reward
- Net Premium / Debit
- -$257.50
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$257.50
- Breakeven(s)
- $72.58
- Risk / Reward Ratio
- Unbounded
Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium.
SUN long call payoff curve
Modeled P&L at expiration across a range of underlying prices for the long call 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% | -$257.50 |
| $15.75 | -77.9% | -$257.50 |
| $31.48 | -55.8% | -$257.50 |
| $47.22 | -33.7% | -$257.50 |
| $62.96 | -11.5% | -$257.50 |
| $78.70 | +10.6% | +$612.09 |
| $94.43 | +32.7% | +$2,185.81 |
| $110.17 | +54.8% | +$3,759.53 |
| $125.91 | +76.9% | +$5,333.25 |
| $141.64 | +99.0% | +$6,906.97 |
When traders use long call on SUN
Long calls on SUN express a bullish thesis with defined risk; traders use them ahead of SUN catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
SUN thesis for this long call
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 expresses a directional view that the underlying closes above the strike plus premium at expiration, ideally with implied volatility holding or expanding to preserve extrinsic value through the hold period. 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 long call positions are structurally 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. Long-premium structures like a long call 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 long call on SUN?
- A long call on SUN is the long call strategy applied to SUN (stock). The strategy is structurally bullish: A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium 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 long call max profit and max loss calculated?
- Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium. For the SUN long call priced from the end-of-day chain at a 30-day expiry (ATM IV 23.00%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$257.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SUN long call?
- The breakeven for the SUN long call priced on this page is roughly $72.58 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 long call on SUN?
- Long calls on SUN express a bullish thesis with defined risk; traders use them ahead of SUN catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
- How does current SUN implied volatility affect this long call?
- 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.