ACDC Covered Call Strategy
ACDC (ProFrac Holding Corp.), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NASDAQ.
ProFrac Holding Corp., a vertically integrated and energy services company, provides hydraulic fracturing, completion, and other products and services to upstream oil and gas companies engaged in the exploration and production of North American unconventional oil and natural gas resources. It operates through three segments: Stimulation Services, Manufacturing, and Proppant Production. The company also manufactures and sells high horsepower pumps, valves, piping, swivels, large-bore manifold systems, seats, and fluid ends. ProFrac Holding Corp. was founded in 2016 and is headquartered in Willow Park, Texas.
ACDC (ProFrac Holding Corp.) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $1.29B, a beta of 1.52 versus the broader market, a 52-week range of 3.08-10.7, average daily share volume of 1.5M, a public-listing history dating back to 2022, approximately 3K full-time employees. These structural characteristics shape how ACDC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.52 indicates ACDC has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a covered call on ACDC?
A covered call pairs long stock with a short out-of-the-money call, collecting premium and capping upside above the short strike in exchange for income.
Current ACDC snapshot
As of May 15, 2026, spot at $7.31, ATM IV 80.30%, IV rank 29.33%, expected move 23.02%. The covered call on ACDC 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 covered call structure on ACDC specifically: ACDC IV at 80.30% is on the cheap side of its 1-year range, which means a premium-selling ACDC covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 23.02% (roughly $1.68 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 ACDC expiries trade a higher absolute premium for lower per-day decay. Position sizing on ACDC should anchor to the underlying notional of $7.31 per share and to the trader's directional view on ACDC stock.
ACDC covered call setup
The ACDC covered 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 ACDC near $7.31, the first option leg uses a $7.68 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ACDC 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 ACDC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $7.31 | long |
| Sell 1 | Call | $7.68 | N/A |
ACDC covered call 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 short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium.
ACDC covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on ACDC. 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 covered call on ACDC
Covered calls on ACDC are an income strategy run on existing ACDC stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
ACDC thesis for this covered call
The market-implied 1-standard-deviation range for ACDC extends from approximately $5.63 on the downside to $8.99 on the upside. A ACDC covered call collects premium on an existing long ACDC position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether ACDC will breach that level within the expiration window. Current ACDC IV rank near 29.33% 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 ACDC at 80.30%. As a Energy name, ACDC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ACDC-specific events.
ACDC covered call 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. ACDC positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ACDC alongside the broader basket even when ACDC-specific fundamentals are unchanged. Short-premium structures like a covered call on ACDC carry tail risk when realized volatility exceeds the implied move; review historical ACDC earnings reactions and macro stress periods before sizing. Always rebuild the position from current ACDC chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on ACDC?
- A covered call on ACDC is the covered call strategy applied to ACDC (stock). The strategy is structurally neutral to slightly bullish: A covered call pairs long stock with a short out-of-the-money call, collecting premium and capping upside above the short strike in exchange for income. With ACDC stock trading near $7.31, the strikes shown on this page are snapped to the nearest listed ACDC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ACDC covered call max profit and max loss calculated?
- Max profit equals short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium. For the ACDC covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 80.30%), 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 ACDC covered call?
- The breakeven for the ACDC covered call 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 ACDC market-implied 1-standard-deviation expected move is approximately 23.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a covered call on ACDC?
- Covered calls on ACDC are an income strategy run on existing ACDC stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
- How does current ACDC implied volatility affect this covered call?
- ACDC ATM IV is at 80.30% with IV rank near 29.33%, 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.