ADIG Covered Call Strategy
ADIG (ADI Global Distribution Inc.), in the Industrials sector, (Industrial - Distribution industry), listed on NYSE.
ADI Global Distribution, Inc. engages in the distribution of third-party low-voltage products. Its products include security and audio-visual solutions. The company was founded by Maurice Coleman in 1929 and is headquartered in Huntington, NY.
ADIG (ADI Global Distribution Inc.) trades in the Industrials sector, specifically Industrial - Distribution, with a market capitalization of approximately $1.35B, a trailing P/E of 296.86, a beta of 0.00 versus the broader market, a 52-week range of 19.53-30.99, average daily share volume of 1.0M, a public-listing history dating back to 2026, approximately 4K full-time employees. These structural characteristics shape how ADIG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.00 indicates ADIG 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 296.86 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a covered call on ADIG?
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.
ADIG snapshot
As of September 29, 2026, spot at $18.80, ATM IV 79.50%, expected move 22.79%. The covered call on ADIG below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 17-day expiry.
Why this covered call structure on ADIG specifically: IV rank is unavailable in the current snapshot, so regime-based timing for ADIG is inferred from ATM IV at 79.50% alone, with a market-implied 1-standard-deviation move of approximately 22.79% (roughly $4.28 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ADIG expiries trade a higher absolute premium for lower per-day decay. Position sizing on ADIG should anchor to the underlying notional of $18.80 per share and to the trader's directional view on ADIG stock.
ADIG covered call setup
The ADIG 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 ADIG at $18.80 on that close, the first option leg uses a $19.74 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ADIG chain at a 17-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 ADIG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $18.80 | long |
| Sell 1 | Call | $19.74 | N/A |
ADIG 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.
ADIG covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on ADIG. 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 ADIG
Covered calls on ADIG are an income strategy run on existing ADIG stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
ADIG thesis for this covered call
The market-implied 1-standard-deviation range for ADIG extends from approximately $14.52 on the downside to $23.08 on the upside. A ADIG covered call collects premium on an existing long ADIG position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether ADIG will breach that level within the expiration window. As a Industrials name, ADIG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ADIG-specific events.
ADIG 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. ADIG positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ADIG alongside the broader basket even when ADIG-specific fundamentals are unchanged. Short-premium structures like a covered call on ADIG carry tail risk when realized volatility exceeds the implied move; review historical ADIG earnings reactions and macro stress periods before sizing. Always rebuild the position from current ADIG chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on ADIG?
- A covered call on ADIG is the covered call strategy applied to ADIG (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 ADIG stock at $18.80 on the most recent close, the strikes shown on this page are snapped to the nearest listed ADIG chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ADIG 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 ADIG covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 79.50%), 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 ADIG covered call?
- The breakeven for the ADIG covered call priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The ADIG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 22.79%; 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 ADIG?
- Covered calls on ADIG are an income strategy run on existing ADIG 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 ADIG implied volatility affect this covered call?
- Current ADIG ATM IV is 79.50%; IV rank context is unavailable in the current snapshot.