
AppLovin Return RateHere's why I'm interested in one-month short-term options: I predict that the price will break the previous high in December and continue to rise steadily like a slow bull market, so one month is more than enough time for the options to rise significantly.
Mathematically, it can be proven: For a stock rising from price a to price b, different price trends have vastly different impacts on option prices. Options rise the fastest and most when the stock experiences a sustained slow bull market. STEM students love using mathematical thinking to maximize profits 🤣.
Option price trends: Sustained slow bull rise > Violent surge > Oscillating uptrend > Stepped rise. To maximize short-term/long-term option gains, besides predicting the direction and magnitude of price movements, you also need to predict whether the stock will experience a sustained slow bull rise during that period (refer to Google's long-term options starting in early April / Applovin's long-term options bought in early September and short-term options starting in late November).
App stocks often experience periods of sustained strong slow bull rises (these periods are easy to predict sometimes), making it easier to capture opportunities for multi-fold option gains compared to other stocks. However, the downside is poor liquidity—buying one or two contracts as a lottery ticket won't make you rich.
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