Investors in Applovin Corp (Symbol: APP) can now explore new options ahead of the March 27th expiration, including key contracts at the $380.00 and $420.00 strike prices. The put contract at $380.00 currently has a bid of $39.20, allowing investors to potentially acquire shares at an effective cost basis of $340.80 if sold to open. This represents about a 1% discount from the current price of $382.88 per share, with a 63% likelihood of the put expiring worthless.
On the call side, the $420.00 strike has a bid of $41.00. Buying shares at $382.88 and selling the call as a covered call could yield a total return of 20.40% if the stock is called away, factoring the current trading price. There’s a 49% chance this contract could also expire worthless, resulting in an additional 10.71% return from the premium. Notably, the implied volatility for the put is 95%, while the call stands at 92%.
