← Best Covered Calls
/ APP
APP Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 70/100
Applovin Corp (Communication Services) · $506.98 ·
Analysis generated Jul 10, 2026 ·
Data as of market close Jul 10
· Market closed — data may be from last trading day
Quick Take
APP is trading at $506.98 with RSI at 49 (neutral territory). Options IV is at 71% — 29% below its 30-day average of 100%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
49
IV Today
70.6%
IV vs 30d Avg
-29%
MACD
bullish
ADX
18
MFI
35
The Setup
APP Covered Call
LONG STOCK
100 shares @ $506.98
SHORT CALL
$550 Sep '26 · $51.2/sh
Net Cost
$45,578
Max Profit
+$9,422
Break-even
$455.78
Projected P&L at Target
+$9,422
(20.7%)
P&L at Expiry
P&L Scenarios
What happens at different APP prices by expiry:
| APP Price | Today | Aug 3 | Aug 26 | Sep 18 (exp) |
|---|---|---|---|---|
| $406 (-20%) | -$6,530 | -$5,841 | -$5,226 | -$5,020 |
| $431 (-15%) | -$4,650 | -$3,792 | -$2,920 | -$2,485 |
| $456 (-10%) | -$2,925 | -$1,910 | -$770 | +$50 |
| $482 (-5%) | -$1,359 | -$208 | +$1,179 | +$2,585 |
| $497 (-2%) | -$496 | +$723 | +$2,237 | +$4,106 |
| $507 (0%) ← now | +$47 | +$1,305 | +$2,892 | +$5,120 |
| $517 (+2%) | +$566 | +$1,858 | +$3,507 | +$6,134 |
| $532 (+5%) | +$1,299 | +$2,632 | +$4,352 | +$7,655 |
| $550 (+8%) ← target | +$2,085 | +$3,450 | +$5,220 | +$9,422 |
| $558 (+10%) | +$2,405 | +$3,779 | +$5,559 | +$9,422 |
| $583 (+15%) | +$3,373 | +$4,757 | +$6,527 | +$9,422 |
| $608 (+20%) | +$4,216 | +$5,581 | +$7,281 | +$9,422 |
Why This Strategy, Why Now
- RSI at 49
- IV -29% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 18 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
APP has bullish momentum (MACD). If a positive catalyst emerges (earnings beat, product launch), the stock could gap past your strike. Consider rolling the call up if APP approaches the strike before expiry.