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Feb 21, 2025
AppLovin Options Trading: A Deep Dive into Market Sentiment
Recent activity in the options market indicates that high-stakes investors are taking a bearish stance on AppLovin (NASDAQ: APP). This trend has become increasingly notable and is worth paying attention to for retail traders. Benzinga's recent analysis of publicly available options data brought this development to light.
Today, Benzinga's options scanner revealed 11 unique options trades for AppLovin, which is an unusual pattern that signals considerable investor interest.
Market Sentiment Overview
The current sentiment among large investors is notably mixed, with 36% displaying a bullish outlook and 45% taking a bearish stance. When analyzing the total options activity identified, it becomes clear that there is one significant put option valued at $26,710, compared to 10 call options totaling an impressive $1,570,997.
Projected Price Range
From the current trading behavior, it seems that significant investors anticipate a price range for AppLovin between $80.00 and $610.00 over the last quarter. This broad range indicates a variety of expectations among traders regarding the company’s future performance.
Volume and Open Interest Insights
Investigating the volume and open interest is crucial for understanding market dynamics. These metrics provide insights into the liquidity and the level of interest in AppLovin's options at various strike prices. The following is an overview of trends in volume and open interest for calls and puts based on AppLovin's significant trades over the past month.
Recent Options Trades Summary
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| APP | CALL | TRADE | BULLISH | 01/17/25 | $264.6 | $263.1 | $264.6 | $82.50 | $370.4K | 205 | 44 |
| APP | CALL | TRADE | BEARISH | 01/17/25 | $267.3 | $265.3 | $265.3 | $82.50 | $318.3K | 205 | 30 |
| APP | CALL | SWEEP | BEARISH | 03/21/25 | $51.2 | $49.1 | $50.0 | $350.00 | $250.0K | 231 | 50 |
| APP | CALL | SWEEP | BEARISH | 01/17/25 | $266.8 | $263.1 | $264.6 | $82.50 | $211.6K | 205 | 8 |
| APP | CALL | SWEEP | BEARISH | 01/17/25 | $130.9 | $128.0 | $128.0 | $220.00 | $153.6K | 91 | 12 |
About AppLovin
AppLovin Corp is a mobile app technology firm that focuses on empowering mobile app developers to thrive in the digital landscape. They offer software solutions that enhance the growth potential for mobile applications by automating marketing and monetization processes.
Current Market Position of AppLovin
- With a trading volume of 41,399, the share price of APP is currently down by 0.63%, resting at $339.69.
- Relative Strength Index (RSI) analyses suggest that APP might be nearing an overbought condition.
- The upcoming earnings report is anticipated within the next 48 days.
Professional Analyst Opinions on AppLovin
Recently, five analysts provided their assessments for AppLovin, establishing a consensus price target of $455.00:
For instance:
- Macquarie continues to rate AppLovin as Outperform, targeting a price of $450.
- Loop Capital maintains a Buy rating for the stock with a target price of $450.
- Stifel continues to hold a Buy rating, projecting a price of $435.
- Citigroup holds a Buy rating, expecting a target price of $460.
- Oppenheimer has modified its rating to Outperform with a target of $480.
Options trading involves greater risk than straightforward stock trading, but it can lead to higher reward opportunities. Experienced options traders often mitigate risks through continuous education, incremental trading strategies, and analysis of multiple indicators while closely monitoring the market.
To keep abreast of the latest developments in AppLovin's options trades, utilizing real-time alerts can be beneficial.
AppLovin, trading, options