$AppLovin(APP.US)
Most traders short AppLovin immediately upon seeing it 21.7% below the 100-day moving average, but the pricing logic in the options market is completely opposite.
Currently, AppLovin's near-month IV is around 74%, historical volatility is about 55%, with a premium of roughly 19 points. The market is pricing in directional movement ahead of the upcoming earnings report on May 13th.
GEX data shows $366.5 is a significant gamma exposure concentration point for market makers, forming a buffer zone below; $473.5 is a resistance cluster zone above. Macquarie initiated coverage with an Outperform rating this week, and Wells Fargo raised its target price to $560. Open interest for near-month calls is concentrated at the $420-$450 strike prices.
Consider entering with a $375 call spread, stop loss at $360, target $450, with a risk-reward ratio of about 4:1. Holding above $366.5 is key; exit if it breaks below 😀
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