SXC Long Put Strategy
SXC (SunCoke Energy, Inc.), in the Energy sector, (Coal industry), listed on NYSE.
SunCoke Energy, Inc. operates as an independent producer of coke in the Americas and Brazil. The company operates through three segments: Domestic Coke, Brazil Coke, and Logistics. It offers metallurgical and thermal coal. The company also provides handling and/or mixing services to steel, coke, electric utility, coal producing, and other manufacturing based customers. In addition, it owns and operates five cokemaking facilities in the United States and one cokemaking facility in Brazil. SunCoke Energy, Inc. was founded in 1960 and is headquartered in Lisle, Illinois.
SXC (SunCoke Energy, Inc.) trades in the Energy sector, specifically Coal, with a market capitalization of approximately $660.2M, a beta of 0.85 versus the broader market, a 52-week range of 5.52-8.99, average daily share volume of 1.9M, a public-listing history dating back to 2011, approximately 1K full-time employees. These structural characteristics shape how SXC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.85 places SXC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SXC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on SXC?
A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration.
Current SXC snapshot
As of May 15, 2026, spot at $7.66, ATM IV 49.60%, IV rank 17.28%, expected move 14.22%. The long put on SXC 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 put structure on SXC specifically: SXC IV at 49.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a SXC long put, with a market-implied 1-standard-deviation move of approximately 14.22% (roughly $1.09 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 SXC expiries trade a higher absolute premium for lower per-day decay. Position sizing on SXC should anchor to the underlying notional of $7.66 per share and to the trader's directional view on SXC stock.
SXC long put setup
The SXC long 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 SXC near $7.66, the first option leg uses a $7.66 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SXC 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 SXC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $7.66 | N/A |
SXC long put 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 strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
SXC long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on SXC. 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 long put on SXC
Long puts on SXC hedge an existing long SXC stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying SXC exposure being hedged.
SXC thesis for this long put
The market-implied 1-standard-deviation range for SXC extends from approximately $6.57 on the downside to $8.75 on the upside. A SXC long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long SXC position with one put per 100 shares held. Current SXC IV rank near 17.28% 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 SXC at 49.60%. As a Energy name, SXC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SXC-specific events.
SXC long put positions are structurally 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. SXC positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SXC alongside the broader basket even when SXC-specific fundamentals are unchanged. Long-premium structures like a long put on SXC 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 SXC chain quotes before placing a trade.
Frequently asked questions
- What is a long put on SXC?
- A long put on SXC is the long put strategy applied to SXC (stock). The strategy is structurally bearish: A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration. With SXC stock trading near $7.66, the strikes shown on this page are snapped to the nearest listed SXC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SXC long put max profit and max loss calculated?
- Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium. For the SXC long put priced from the end-of-day chain at a 30-day expiry (ATM IV 49.60%), 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 SXC long put?
- The breakeven for the SXC long put 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 SXC market-implied 1-standard-deviation expected move is approximately 14.22%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a long put on SXC?
- Long puts on SXC hedge an existing long SXC stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying SXC exposure being hedged.
- How does current SXC implied volatility affect this long put?
- SXC ATM IV is at 49.60% with IV rank near 17.28%, 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.