$APP 20260109 580.0 PUT$ I managed to catch a great entry on $APP during yesterday’s session by leaning into the midday volatility. The stock took a sharp dive following rumors that China is stepping up its regulatory enforcement against mobile applications over potential national security and data privacy concerns. These reports often trigger immediate selling in the ad-tech space, as investors fear that a crackdown on Chinese developers—who are significant users of mobile marketing platforms—could create a ripple effect on global ad spend. Recognizing that the panic seemed disproportionate to AppLovin’s actual fundamental exposure, I took the opportunity to sell a 2-day put option right as the dip was most aggressive.
The trade thesis played out perfectly as the market began to stabilize and digest the news toward the closing bell. By the time the session ended, $APP had already clawed back a significant portion of that afternoon drop, leaving my position in a very strong spot. I’m currently sitting on over 60% profit on the option, and with the short duration, the time decay is working heavily in my favor. I’ll be watching the price action closely today to see if I should let it expire for the full premium or simply book the gains early and move on to the next setup. Trade Feed: Who is your favorite trader?
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