Alright looking for thoughts here.
APP has had multiple PT raises, fundamentals seem fine, but this thing has been an absolute roller coaster the last 6 months, straight up elevators both ways. One thing I’m wondering about is the huge Jan 16 LEAP expiration that just hit.
Is it possible some of this dump into expiration was just options mechanics? Dealer hedging, LEAPs getting rolled/unwound, gamma nonsense, etc. Basically price getting pushed around for reasons that have nothing to do with the actual business.
I’ve seen other high-beta names get sold into big expirations and then randomly rip once the hedging pressure disappears. Not saying it has to happen here, just wondering if that’s in play.
Full disclosure so you can roast me properly:
I’m holding 615 calls expiring 1/30. Bought them Thursday, averaged down yesterday. Yes, I hate myself a little.
So what do you guys think:
Dead cat and more pain incoming?
Or classic “dump into opex then bounce after” setup?
Not looking for hopium, just want to hear how others are reading this price action.