New Options Open Up for Applovin Corp Traders
Fresh Opportunities in June 2025 Options
Investors in Applovin Corp (Symbol: APP) can now explore new options featuring a June 2025 expiration. With 199 days remaining until that date, these contracts offer a chance for sellers of puts or calls to secure higher premiums compared to shorter-term contracts. At Stock Options Channel, our YieldBoost formula has pinpointed one noteworthy put and one call contract from the newly available June 2025 options.
Put Contract Analysis at $350.00
The put contract at the $350.00 strike price currently has a bid of $62.10. If an investor chooses to sell-to-open this put, they will agree to buy the stock at $350.00 while also collecting the premium. This setup brings the cost basis of the shares down to $287.90, not including broker commissions. For those already interested in buying APP shares, this option appears to be a viable alternative to the current market price of $358.08 per share.
Since the $350.00 strike is approximately a 2% discount from the current trading price, there is a chance that the put contract may expire worthless. Current analysis indicates a 64% probability of that scenario occurring. Stock Options Channel will track these odds over time, updating them on our contract detail page. If the contract does expire worthless, the collected premium would yield a return of 17.74% on the cash commitment, or 32.55% when annualized — which we term the YieldBoost.
Historical Context of Applovin Corp Stock
Below is a chart representing the trailing twelve months of trading activity for Applovin Corp, with the $350.00 strike highlighted in green:
Call Contract Insights at $390.00
On the call side of the options chain, a contract at the $390.00 strike price is currently bid at $63.90. If an investor buys shares of APP at $358.08 and sells-to-open this call contract as a “covered call,” they commit to selling the stock at $390.00. Including the premium received, this would yield a total return of 26.76% if the stock is called away at the June 2025 expiration (before broker commissions). However, significant upside potential may be forfeited if APP shares increase dramatically, making it important to analyze the past trading history along with the company’s fundamentals.
The following chart shows the trailing twelve-month trading history for Applovin Corp, with the $390.00 strike price highlighted in red:
Probability and Returns of Covered Call Contracts
The $390.00 strike price reflects a roughly 9% premium over the current trading price. Therefore, there exists a chance that the covered call might expire worthless, allowing the investor to retain their stock along with the premium earned. Current data shows a 44% likelihood for this to occur. Stock Options Channel will monitor these odds, providing updates and charts of the figures on our site. Should the covered call expire worthless, the premium would add a 17.85% return enhancement for the investor, equating to an annualized figure of 32.74%, referred to as the YieldBoost.
Volatility Insights
The implied volatility for the put contract stands at 71%, while the call contract’s implied volatility is at 70%. Meanwhile, we calculate the actual trailing twelve-month volatility, based on the last 251 trading day closing values and today’s price of $358.08, to be 69%. For additional ideas on put and call options, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
