Applied Digital has seen a remarkable year, with its stock soaring to $40.20 in intraday trading on October 16 before settling around $33. Overall, the stock is up over 337% year-to-date and 306% in the last 52 weeks. Wall Street now has a high target price of $56, backed by a Strong Buy consensus.

For adventurous traders, a Deep ITM LEAPS Long Call option strategy can offer stock-like upside exposure with more time for the trade to work out. These options expire in 1 year or more, giving the trader unlimited potential upside if the stock trades above the strike price at expiration.

On the other hand, conservative investors may consider a Bull Put/Put Credit Spread strategy. This involves selling an out-of-the-money put option while buying a put option with a lower strike price on the same underlying asset. If the stock remains above the short put strike at expiration, investors can keep the full net credit received.

Both strategies have their advantages and drawbacks, catering to different risk appetites. Deep ITM LEAPS Long Calls offer unlimited upside but require significant capital, while Bull Put/Put Credit Spreads start with a credit, have limited losses, and capped profits. It’s crucial to consider your risk tolerance, market outlook, and other factors when choosing a strategy.

Read more at Barchart: 2 Options Trades to Profit From Applied Digital’s $56 Price Target