$APP 20251128 600.0 CALL$ Yesterday, $APP (AppLovin) saw a strong move, climbing 7.6%. While this looks bullish, I believe the move is primarily about short-term sentiment, creating a great opportunity to sell premium on elevated volatility.

I have established a Short Strangle position by coupling my existing Short Put contract with a newly opened Short Call contract.

📉 The Strangle Thesis: Volatility and Range-Bound Trading

1. Market Outlook: My core thesis is that $APP is likely to be range-bound in the near-term. Despite yesterday's spike, the market remains generally cautious, and I anticipate the price will consolidate or drift sideways rather than sustain a strong directional move.

2. Strategy Transition: I converted my directional Put position into a non-directional Short Strangle. This strategy thrives when volatility is high and the underlying stock trades between the strike prices of the short Call and short Put.

3. The Goal: By selling premium on both sides, I collect a higher total credit, effectively maximizing my income from the elevated Implied Volatility (IV). The goal is to have both the Call and the Put expire worthless, realizing the full premium collected, while the stock stays within the defined range.

This move hedges against the risk of the stock breaking out strongly in either direction, while allowing me to profit from the time decay (Theta) and the drop in volatility (Vega) inherent in the Strangle strategy.