Options Corner: APP Earnings Event
•February 11, 2026
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Why It Matters
Understanding AppLovin’s technical landscape helps options traders calibrate risk, especially as the software sector faces broad declines and earnings volatility.
Key Takeaways
- •AppLovin stock down ~30% YTD, lagging sector peers
- •Chart shows descending trend line from September highs, near break
- •Support levels identified at 400 and 347, resistance near 550
- •Proposed bullish vertical put spread targets 403.90 strike, $2 credit
- •Trade risk/reward skewed: $200 profit versus $800 potential loss
Summary
The Options Corner segment focused on AppLovin’s earnings event, using a technical chart to gauge the stock’s recent performance. The host highlighted a roughly 30% year‑to‑date decline, noting that AppLovin has failed to reclaim its September‑December highs and now trails the broader S&P software sector.
Rick Duquette identified a descending trend line connecting past peaks, with key horizontal support zones at 400 and 347 and resistance around 550. He pointed out that the stock sits below its moving averages, near the 251‑day EMA, and that volume‑profile analysis shows heavy trading near the 347 level, suggesting potential price pivots.
The analyst illustrated a neutral‑to‑bullish vertical put spread: a February 20th 403.90 put sold for a $2 credit, offering a defined‑risk structure with a $200 maximum profit against an $800 maximum loss. He emphasized the trade’s reliance on the 400 support holding and the expected 17% move range, allowing traders to adjust strikes based on their bias.
If AppLovin can stabilize above the 400 support, the proposed spread could capture modest upside while limiting downside exposure. Conversely, a breach could trigger the larger loss scenario, underscoring the importance of precise technical entry points for options traders navigating volatile software stocks.
Original Description
Rick Ducat keeps his eyes on the software trade ahead of Applovin's (APP) earnings. He compares APP to the overall tech sector (XLK) and some of the standout software names like Palantir (PLTR). On the 1-year chart, Rick circles the highs hit in September & December of last year before pulling back so far to start 2026. He underlines $410 as a near-term area of support, with a higher volume trading area near $400. Later, Rick composes an example trade using a put vertical strategy and the Feb. 20 strike date.
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