AppLovin's Options Frenzy: What You Need to Know

Investors with a lot of money to spend have taken a bearish stance on AppLovin APP.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with APP, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 8 uncommon options trades for AppLovin.

This isn't normal.

The overall sentiment of these big-money traders is split between 37% bullish and 62%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $295,640, and 6 are calls, for a total amount of $300,109.

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Predicted Price Range

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $40.0 to $52.5 for AppLovin over the recent three months.

Analyzing Volume & Open Interest

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

This data can help you track the liquidity and interest for AppLovin's options for a given strike price.

Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of AppLovin's whale activity within a strike price range from $40.0 to $52.5 in the last 30 days.

AppLovin Call and Put Volume: 30-Day Overview

Significant Options Trades Detected:

About AppLovin

AppLovin Corp is a mobile app technology company. It focuses on growing the mobile app ecosystem by enabling the success of mobile app developers. The company's software solutions provide advanced tools for mobile app developers to grow their businesses by automating and optimizing the marketing and monetization of their application.

Following our analysis of the options activities associated with AppLovin, we pivot to a closer look at the company's own performance.

AppLovin's Current Market Status

• With a volume of 2,131,799, the price of APP is up 0.91% at $46.46.
• RSI indicators hint that the underlying stock may be approaching overbought.
• Next earnings are expected to be released in 7 days.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for AppLovin, Benzinga Pro gives you real-time options trades alerts.