2 Options Trades to Profit From Applied Digital’s $56 Price Target

Group 1 - Applied Digital's stock has experienced significant growth, rising over 337% year-to-date and 306% in the last 52 weeks, with a peak intraday trading price of $40.20 on October 16 before closing around $33 [1] - Wall Street's target price for Applied Digital has increased from $24 in August to $56, indicating a Strong Buy consensus and a bullish outlook on the company's prospects [2] Group 2 - Two option strategies are suggested for capitalizing on the stock's bull run: one for adventurous traders and another for conservative investors [3] - The adventurous strategy involves a deep in-the-money (ITM) Long-Term Equity Anticipation Securities (LEAPS) long call, which provides stock-like upside exposure and less time decay compared to short-dated options [5][6] - An example trade is provided, where a 20-strike long call on APLD expiring on January 15, 2027, costs $21.20 per share, with a breakeven price of $41.20 and a delta of 85 [8]