AppLovin Stock Today: How To Construct A Short Iron Condor And Take In $560 Now

Blockhead12-20 22:00

Even after Wednesday's Federal Reserve-sparked marketwide sell-off, AppLovin (APP) remains a stock market leader. Let's consider a short iron condor trade in AppLovin stock. With strong ratings from ...

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Let's consider a short iron condor trade in AppLovin stock.\nWith strong ratings from ...</p>\n\n<a href=\"https://www.investors.com/research/options/applovin-stock-today-short-iron-condor-take-in-560/\">Source Link</a>\n\n</div>\n","source":"investor_business_daily_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AppLovin Stock Today: How To Construct A Short Iron Condor And Take In $560 Now</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAppLovin Stock Today: How To Construct A Short Iron Condor And Take In $560 Now\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-20 22:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.investors.com/research/options/applovin-stock-today-short-iron-condor-take-in-560/><strong>Blockhead</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Even after Wednesday's Federal Reserve-sparked marketwide sell-off, AppLovin (APP) remains a stock market leader. Let's consider a short iron condor trade in AppLovin stock.\nWith strong ratings from ...</p>\n\n<a href=\"https://www.investors.com/research/options/applovin-stock-today-short-iron-condor-take-in-560/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4023","symbol_name":"应用软件","start_time":0,"source_url":"https://www.investors.com/research/options/applovin-stock-today-short-iron-condor-take-in-560/","article_id":"2492444852","we_media_id":null,"thumbnails":["https://www.investors.com/wp-content/uploads/2021/05/Stock-AppLovin-02-shutt-150x150.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2492444852","pubTimestamp":1734703236,"columns":[],"sourceInfo":{"source_id":"investor_business_daily_highlight","name":"Investor’s Business Daily"},"weMediaInfo":null,"summary":"For sellers of option premium, the short iron condor offers a unique opportunity for outsized gains.","collect":0,"end_time":0,"defaultTopTitle":"investors.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4023":"应用软件","BK4588":"碎股","APP":"AppLovin Corporation","BK4585":"ETF&股票定投概念","BK4539":"次新股"},"translate_title":"今日AppLovin股票：如何构建一只空头铁秃鹰并立即买入560美元","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"APP":1},"content_text":"Even after Wednesday's Federal Reserve-sparked marketwide sell-off, AppLovin (APP) remains a stock market leader. Let's consider a short iron condor trade in AppLovin stock.\nWith strong ratings from IBD and generally bullish sentiment in the platform dedicated to digital app development, AppLovin stock is likely attracting buyers who are waiting for opportunities to enter this name. The market backdrop this week, however, looks markedly different from weeks prior.\nWhy? On Wednesday, traders began to swiftly sell positions as Federal Reserve Chairman Jerome Powell took the podium during late-afternoon trading to discuss future rate cuts and what monetary policy might look like in 2025.\n\n\n\n↑\nX\n\n\n\n\nHow To Listen For Sell Signals And When To Stick To Your Hold Rules\n\n\nSee All Videos\n\n\n\n\nNOW PLAYING\nHow To Listen For Sell Signals And When To Stick To Your Hold Rules\n\n\n\n\nUntil now, only shallow dips were present in AppLovin stock. We'll need to wait to see if the sellers follow through, or if traders hold their opinion about buying the dip into the end of the year and January 2025.  \nWednesday's 7% bludgeoning of AppLovin stock likely got exacerbated by algorithmic trading upon the loss of near-term price-support zones. APP fell through the 21-day exponential moving average.\nAppLovin Stock Today: The Setup\nThe recent moves in AppLovin stock add perspective to a recent suggested trade, a short iron condor in Berkshire Hathaway (BRKB). Question is, do sharp price shocks bring buyers back? \nWhen we position with short iron condors, we attempt to collect profits thanks to time decay while a stock forms bases or settles into a new direction. As always, assume that we don't know the direction of AppLovin stock. But we estimate the magnitude of the move using ATR (average true range), as measured on the monthly chart in this trade.\nWe also think about implied moves that market makers have priced into the trade over the months ahead.\nTrade Structure\nThe short iron condor consists of two spreads: a short call spread and a short put spread that define a range of motion that we estimate the stock's price action will not exceed.\n\nSell to open 1 APP Feb. 21-expiring call with a 350 strike price.\nBuy to open 1 APP Feb. 21 360 call.\nSell to open 1 APP Feb. 21 250 put.\nBuy to open 1 APP Feb. 21 240 put.\n\nThe credit received is $5.60, as of recent trading, or $560 per set of calls and puts. Treat this credit as the maximum profit in this trade in AppLovin stock.\n\nWe could collect maximum profits if prices hold either below 350 or above 250 through February. In this trade, we collect a premium immediately and, as this premium erodes, we collect revenue from the position.  \nOur maximum risk? Calculate it in the following way: Take the distance between strikes in AppLovin stock (in this case they are both the same at $10), or $10 minus credit received ($5.60) and we get $4.40, or $440 per set of contracts.  \nVolatility Boost\nOrdinarily, we would collect less than our maximum risk, but volatility rose more than 70% on Wednesday.  \nPlus, in this specific example, our probability of gains in the short iron condor with strikes further out of the money (far away from the current price of the stock) is often as much as six times more likely than the long iron condor.   \nTrading on the side of probabilities, rather than the possibility of outsize gains, is the way most traders who sell options operate. Put another way, they lean on the law of large numbers, which reflects what happens over a long period of time.    \nDefending The Trade\nNow, let's identify key chart levels. Price patterns observed in AppLovin stock have been stellar. The recent fade into weekly support areas, such as 300 and 320, allow us to position along with the option traders seen as defending certain price levels of support and resistance. \nI often choose option strikes that have larger trading volumes. Why? This indicates where the option traders are placing their risk parameters. \nThe strategy result provides three choices to exit the trade.  One, buy back the iron condor once it gets to an acceptable profit margin for you.  I customarily look for 30%-60% profit for these kinds of trades in the current environment of volatility.\nTwo, buy back the iron condor once it hits a loss threshold as determined by personal risk. I customarily look at about 65%. Yet depending on my position size, I will also choose 50%.\nAnd three, buy back the spreads into the week before expiration, if all is going well and you have decided to hold the trade into closer to the end of expiration. However, I have had many a trade go sideways, taking it down to the wire and not capturing gains, so I do not advise this. \n Anne-Marie Baiynd is a 20-year veteran trader of stocks, options and futures and is the author of \"The Trading Book: A Complete Solution to Mastering Technical Systems and Trading Psychology.\" She holds no positions in the investments she writes about for IBD. You can find her on X at @AnneMarieTrades   \n YOU MIGHT ALSO LIKE:\nInside IBD Big Cap 20\nFind The Best Growth Stocks Via This Highly Stringent Screen\nWant More Options Trading Strategies? Go Here\nWhy The 21-Day Exponential Moving Average Matters\nHere's The Latest IBD Podcast","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2492444852"}