Covered Call on Applied Digital (APLD)
A covered call on Applied Digital (APLD) is a neutral to mildly bullish options strategy, anchored to APLD's real 26.42 USD price as of 2026-09-11. See how it works, an illustrative strike setup, and max profit/loss/breakeven below — not a live option quote.
Last updated 2026-09-11 · Source: FMP end-of-day close (real price); strikes illustrative, educational only — not a live option quote
How does a covered call on APLD work?
A covered call on Applied Digital means holding 100 shares and selling one out-of-the-money call against them to collect premium. It trades away upside above the strike for income.
Outlook: neutral to mildly bullish. Real reference price: 26.42 USD (as of 2026-09-11).
How to set up the covered call (illustrative)
| Leg | Detail (illustrative) |
|---|---|
| Own | 100 shares of APLD (real last price ~26.42 USD) |
| Sell | 1 call, illustratively ~4% OTM near the 27.48 USD strike |
Strikes are illustrative percentages of the real price, not live option quotes. Pick actual strikes and expiries from a broker's option chain.
Max profit, max loss and breakeven
| Max profit | (call strike − share cost) + premium collected = about (27.48 USD − your cost) + premium |
|---|---|
| Max loss | share cost − premium collected (if APLD falls to zero) — same downside as owning the shares, reduced by the premium |
| Breakeven | share cost − premium collected |
When to use it — and the risks
When: When you own APLD and expect it to trade flat-to-slightly-up into expiry, and want to earn income on the position.
Risks: Upside above 27.48 USD is capped; you still bear the full downside of holding APLD (minus the premium).
Related research pages
Frequently asked questions
What is a covered call on APLD?
A covered call pairs owning APLD shares with selling a call against them — you collect premium income in exchange for capping the upside above the strike.
How do you set up a covered call for APLD?
Hold 100 APLD shares and sell 1 call near a strike about 4% above the current 26.42 USD price. Treat 27.48 USD as an illustrative anchor — pull real strikes from a live option chain.
What is the max profit and loss?
Profit tops out at the premium plus any gain up to the strike; loss tracks the shares' decline, cushioned by the premium collected.
When should you use a covered call on APLD?
Best when you already hold APLD, expect it to stay flat-to-slightly-up, and want income while you wait — not when you expect a big rally, since gains above the strike are given up.