What's happening behind the scenes with $APP stock
On January 20, Capital Watch published against AppLovin with serious allegations of connection to a money laundering network.
Since then, the stock price crashed 36%
Until the day before yesterday
The day before yesterday, before the open, Capital Watch published an apology and retracted the serious allegations.
In response, $APP stock reacted with a daily rise of about 16%
Meanwhile, we identified active and unusual options activity.
1. The day before yesterday, when the price was about $470, an anonymous entity bought options with a short expiry for the weekend (February 13) with a strike price of 600, 27% higher than the current price.
This whale paid a premium of almost $300,000 for the trade.
2. Yesterday, we identified another trade, expiring this weekend, with an even higher target price of $630 (an increase of about 34%), and a premium paid totaling $116,000.
3. A third trade was also identified yesterday, with the same expiry date, a target price of $650 (almost 40% higher than the current price), and a premium paid totaling about $110,000.
4. Today, two more trades were identified with the same expiry date, target prices ranging from 630 to 650, 40% higher than the current price, with a total premium of $226,000.
In total, these are trades worth $700,000 with a very short expiry, for the current weekend, and prices 30%-40% higher than the current price.
And what's happening tonight?
None other than $APP's quarterly report.
Is this a type of hedging ahead of the report, or a gamble?
It is very possible that this is simply hedging (about 5% of the shares are borrowed for short positions), we really don't know, but what can be said with certainty is that this is very unusual activity.
In addition, we checked the latest analyst updates, attached for you.
We are monitoring.