Following the previous announcement regarding $APP
The company reported results yesterday and showed revenue growth of 66%, which reached $1.66 billion, above estimates of $1.6 billion
Earnings per share also reached $3.24, well above estimates of $2.96
Net income was $1.12 billion, a rate of 66% and growth of 84% from the previous year
Guidance was also well above expectations, both in revenue and earnings per share
Yet the stock reacted with declines of about 10%
And behind the scenes? Additional options market activity during the decline, and this time in significant amounts, and again with expiration tomorrow
Two options trades, at a time when the stock was $431, with strike prices of $530-$575; these prices are 22%-33% higher than the stock price at the time of the trade
Expiration on Friday, an immediate timeframe
And note how much they paid for it
The total premium paid in both trades amounts to about $2,270,000
If we add this to the immediate trades we saw before the report, we get a total of about $3,000,000 in options trades expiring on Friday with ranges tens of percent higher than the current price
Something here doesn't make sense and doesn't add up
We cannot explain this, but someone insists on repeatedly buying options with very high strike prices and very short expiration
Meanwhile, immediately after the options purchase, the stock price corrects upwards, and is currently trading down about 7%
The big question is, what is really happening here?