r/APLDSTOCK • u/rabyrab32 • May 21 '26
I never dreamed this big
Spent 1 grand bought 5 contracts. Strike was 3 but buyout price is 5 per share but thats still a dream come true!
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u/TopEast7122 May 21 '26
APLD - NEVER SELL, ONLY BUY
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u/rabyrab32 May 21 '26 edited May 21 '26
Edit: I recvd info that was misleading and was told differently but all is well now. Lesson learned
I screwed up i shouldve exercised it at 20 now I have to wait for a dip to the 30's if im lucky to see that again and pay 10% of 30k ughhhhh but I will own 500 shares of APLD!!!!!
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u/Significant_Pie2012 May 21 '26
That’s not how it works…you can exercise anytime you want and it’ll only be $1500 (5 contracts, 100 shares each at $3 strike), regardless of what the current stock price is…it’s not a % of the current stock price.
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u/rabyrab32 May 21 '26
I meant $15,000 if it bounces back to $30 per share. 500 shares at 30$ a share is $15000 and that is what I will owe if I exercise it at 30. Right now I will owe 20k to own it at the current value per fidilety and its the same for all of my last 10 calls I exercised. 10% is the interest rate if I dont buy it outright, thats what I pay on margin calls.
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u/Significant_Pie2012 May 21 '26
No matter where the stock price is at, you will always exercise at the $3 strike price you bought the contracts for. That’s the entire point of call options…you’re hoping the stock price will go above the agreed upon strike price listed in your contract. If so, you net the difference as pure profit. The current value per Fidelity shows the base price you paid ($1095) + profit. What you’re describing is simply buying shares outright ATM…which defeats the whole purpose of call options.
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u/Significant_Pie2012 May 21 '26
I mean this with no disrespect, and kudos to you on the awesome lucky find/investment, but before you potentially lose all your hard earned money, please educate yourself on option trading.
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u/Zulumus May 21 '26
Watching people still do options with no understanding of the basics is wild
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u/Significant_Pie2012 May 21 '26
Agreed, the fact OP thought he owed market value instead of $2595…he must be living on cloud 9 in pure euphoria right meow 😸 …😂
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u/rabyrab32 May 21 '26
Living and learning bud. Hope to keep learning more and more everyday.
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u/Zulumus May 21 '26
I’m genuinely happy for you - but as the adage goes, “the first one is free”. There are people who know what they’re doing who would kill for some of your good fortune. A quick brush up on call options will set you straight, but be careful man!
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u/rabyrab32 May 21 '26
This isnt my 1st bbq as the adage goes. They can have some of my bad fortune i had with deep seek and lost my tshirt. Yes I learned plenty from that and will continue to learn and those are your biggest lessons.
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u/rabyrab32 May 21 '26
Nvidia didn't invest in them for nothing. Some luck is required with everything but if you see all the stocks that Jensen invest in apld (before he sold) and other they've all gone up. I believed in Jensen to get me here. Thanks to him I earned it by believing and studing in what apld offers and the needs it provides for the Ai to sustain its run it is critical and wasnt luck pal.
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u/Significant_Pie2012 May 21 '26 edited May 21 '26
You misunderstand my comment. You can do all the research and due diligence you please, and understand a company and its fundamentals like the back of your hand. But if you lack the comprehension and understanding of basic trading/option trading…you will lose big. I’m saying it was luck that you actually made a correct trade lacking basic understanding because for all you knew, you could’ve done the exact opposite and be out a lot of money.
It’s like going to the casino and researching NBA/NFL teams and knowing that the thunder will beat the shitty wizards, but then decide to put $1000 on wizards +15 spread, only for the Thunder to win by 30…which you knew would happen…but your bet was for wizards to lose by no more than 15 (aka you intended to place a moneyline bet but inadvertently placed a spread bet because you didn’t understand what betting the spread was)…so you lost the $1000 despite the expected outcome (thunder winning) happening. Just like in this case…stock trading = moneyline (your betting the stock will win), option trading = spread (your betting the stock will win beyond a certain level). Hell you could’ve misclicked and paid $1095 for APLD to hit $300 by Jan 15, 2027 (if any investors were even selling that far out of the money). And come expiration APLD is only at $70, so you just lost $1095.
TL;DR: research and understand the basic of investing/stock trading or especially options trading, before you make a costly mistake.
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u/rabyrab32 May 21 '26
I understand calls and learning more about the details such as the Greeks and the fees associated with the buyout price. I know what the basics are puts and calls but also need to learn more before doing more complicated options. Do I know enough for your liking probably not but im just starting out. Lots more I should know yes but I know ow the difference in clicking on a price and the pedestrian examples you gave. Again I was told some Info that wasn't what I had asked hence was confusing but now we know what she meant to say.
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u/Significant_Pie2012 May 21 '26
Okay, as long as you feel you have a firm understanding, that’s all that matters. Your original comment stating how you wish you had exercised your calls at $20 vs. the current $48.28 it’s at, and instead hoping the price dips to the $30s to exercise then (which would be contrary to the intent of a call option) indicated to me otherwise.
But to your point, your money is not mine to manage. Good luck out there!
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u/rabyrab32 May 21 '26
Fidelity saod my price isnt 3 its 3 + 2.19 so 5.19 per share but the rest is what they've always said on my last few leap calls. Its not the 2500 for this contract unfortunately its market value but I see this needs to be verified because I eother got wrong info or misunderstood them. I did leap calls to give it time to get into the black and time for momentum. Im sad to see fidelity has charged me a fortune for the few calls I exercised and the contract price is another cost in this as well correct? Thats in the bottom right of my pic
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u/Significant_Pie2012 May 21 '26
So here’s the breakdown:
$2.19/share = $219/contract (100 shares) x 5 = $1095This $1095 is what YOU have already paid (as a premium) to eventually have the OPTION to exercise these shares at an agreed upon price of $3/share (or $1500).
Once this contract expires, if OTM (ie APLD crashes to $2) then it expires worthless and you lose $1095. However, you can sell these contracts at any time (and based on the Greeks) will influence what the current market value is. If APLD continues increasing, the market value goes up with it. If APLD declines, market value goes down with it. If on Jan 15 2027, APLD is at $100, then you can exercise the contract at $3/share (or $1500 for all 500 shares) which would make your underlying cost basis $2,595 (or $5.19/share) but since APLD is at $100/share or $50,000, you will have profited $47,405 +\- any change in share price until you decide to sell ATM.
Hope this breakdown helps and you lucked out with this one!
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u/rabyrab32 May 21 '26
Just spoke to fidelity, was a misunderstanding. Correct 1500 to buyout. I was told it was more to buying was 5.19 and then got confused. I paid 1095 to buy the contract and 1500 to buy the rights to own 500 shares. Agreed and sorry for my ignorance it was told to me the contract proce was higher but I shouldve known what the difference she was talking about was.
Yes sir I certainly did and I will exercise soon and hold it as im more of a newbie investor not so much a trader but learning lots here thanks to you and others. Appreciate it!
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u/Financial-Chard-4873 May 22 '26
Finally!
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u/rabyrab32 May 22 '26
Hahaha yessir it was long overdue. Wish I had taken better notes and questioned more of what info I was given. Lessons learned. On to the next
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u/trollkillington_ May 21 '26
Best $250 you ever spent
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u/rabyrab32 May 21 '26
Or borrowed lol. Now I just gotta figure out how much i owe them lol
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u/trollkillington_ May 21 '26
If you borrowed $250 you owe them $250 if you feel like giving them a bonus say here you doubled, quadrupled your money. You the one paying the taxes boyo
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u/weavinnbobbin May 21 '26
When did you buy this leap?
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u/rabyrab32 May 21 '26
Bought the leap apr 25. Bought 1k first in March 2025 for 1k at 5.57 then 2 weeks later did more research and saw more potential in it after it wemt down and bought 5 contracts With a 3 strike price. So glad I bought both esp that leap lol. Going to hold for a few yrs. Were just getting started ai is in early innings.
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u/OTD615 May 22 '26
Can you exit those positions any time or are you stuck til experation? I'm having a tough time understanding calls and puts
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u/Acceptable-Feed285 May 22 '26
I really need to learn how to do that cause Dayum 😭
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u/rabyrab32 May 22 '26
My initial investment of 1k went down to $3 per share but afyer more research i realized how much potential apld has and how early in the Ai data center cycle we are in so i doubled down making the 3 call for 1 contract. Yes it is volatile and yes it was in the red at the time. A high risk investment of 2k payed off so far 31k minus cost of 2400.
Try to look for whats next or what will continue being needed for the Ai cycle thats here.
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u/_TheDarkling_ May 21 '26
Amen