How are APLD 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 APLD covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 102.38%), the computed maximum profit is $571.00 per contract and the computed maximum loss is -$3,378.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a APLD covered call?

The breakeven for the APLD covered call priced on this page is roughly $33.79 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 APLD market-implied 1-standard-deviation expected move is approximately 29.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current APLD implied volatility affect this covered call?

APLD ATM IV is at 102.38% with IV rank near 31.43%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

APLD Covered Call Strategy

APLD (Applied Digital Corp.), in the Technology sector, (Information Technology Services industry), listed on NASDAQ.

Applied Digital Corporation designs, develops, and operates digital infrastructure solutions to high-performance computing (HPC) and artificial intelligence industries in North America. It operates through: Data Center Hosting Business, and HPC Hosting Business. The company offers infrastructure services to crypto mining customers; and GPU computing solutions for critical workloads related to AI, machine learning, and other HPC tasks. It also engages in the designing, constructing, and managing of data centers to support HPC applications. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation has an lease agreement with CoreWeave for an additional 150MW at its Polaris Forge 1 Campus in Ellendale, North Dakota.

APLD (Applied Digital Corp.) trades in the Technology sector, specifically Information Technology Services, with a market capitalization of approximately $11.19B, a beta of 5.64 versus the broader market, a 52-week range of 9.02-50.725, average daily share volume of 23.5M, a public-listing history dating back to 2022, approximately 205 full-time employees. These structural characteristics shape how APLD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 5.64 indicates APLD 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 APLD?

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 APLD snapshot

As of June 30, 2026, spot at $37.84, ATM IV 102.38%, IV rank 31.43%, expected move 29.35%. The covered call on APLD 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 31-day expiry.

Why this covered call structure on APLD specifically: APLD IV at 102.38% is mid-range versus its 1-year history, so the credit collected on a APLD covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 29.35% (roughly $11.11 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated APLD expiries trade a higher absolute premium for lower per-day decay. Position sizing on APLD should anchor to the underlying notional of $37.84 per share and to the trader's directional view on APLD stock.

APLD covered call setup

The APLD 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 APLD near $37.84, the first option leg uses a $39.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed APLD chain at a 31-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 APLD shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$37.84	long
Sell 1	Call	$39.50	$4.05

APLD covered call risk and reward

Net Premium / Debit: -$3,379.00
Max Profit (per contract): $571.00
Max Loss (per contract): -$3,378.00
Breakeven(s): $33.79
Risk / Reward Ratio: 0.169

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.

APLD covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on APLD. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$3,378.00
$8.38	-77.9%	-$2,541.45
$16.74	-55.8%	-$1,704.89
$25.11	-33.7%	-$868.34
$33.47	-11.5%	-$31.79
$41.84	+10.6%	+$571.00
$50.20	+32.7%	+$571.00
$58.57	+54.8%	+$571.00
$66.93	+76.9%	+$571.00
$75.30	+99.0%	+$571.00

When traders use covered call on APLD

Covered calls on APLD are an income strategy run on existing APLD stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.

APLD thesis for this covered call

The market-implied 1-standard-deviation range for APLD extends from approximately $26.73 on the downside to $48.95 on the upside. A APLD covered call collects premium on an existing long APLD position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether APLD will breach that level within the expiration window. Current APLD IV rank near 31.43% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on APLD should anchor more to the directional view and the expected-move geometry. As a Technology name, APLD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to APLD-specific events.

APLD 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. APLD positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move APLD alongside the broader basket even when APLD-specific fundamentals are unchanged. Short-premium structures like a covered call on APLD carry tail risk when realized volatility exceeds the implied move; review historical APLD earnings reactions and macro stress periods before sizing. Always rebuild the position from current APLD chain quotes before placing a trade.

Frequently asked questions

What is a covered call on APLD?: A covered call on APLD is the covered call strategy applied to APLD (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 APLD stock trading near $37.84, the strikes shown on this page are snapped to the nearest listed APLD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are APLD 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 APLD covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 102.38%), the computed maximum profit is $571.00 per contract and the computed maximum loss is -$3,378.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a APLD covered call?: The breakeven for the APLD covered call priced on this page is roughly $33.79 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 APLD market-implied 1-standard-deviation expected move is approximately 29.35%; 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 APLD?: Covered calls on APLD are an income strategy run on existing APLD 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 APLD implied volatility affect this covered call?: APLD ATM IV is at 102.38% with IV rank near 31.43%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.