Shares are fresh off a 52-year peak
Specifically, the stock’s recent peak comes amid historically low implied volatility (IV). This has been a bullish combination in the past, according to Schaeffer’s Quantitative Analyst Rocky White. White’s data points to one other signal over the last five years when the equity was trading within 2% of its 52-week high, while its Schaeffer’s Volatility Index (SVI) sat in the 20th percentile of its annual range or lower.
This is currently the case with the stock’s SVI of 46%, which sits in the 17th percentile of its annual range. Shares were higher one month after that signal, averaging a 7.2% pop. From its current trading level, a move of similar magnitude would place APP back above $44.
A continued unwinding of pessimism could also boost the security. Though short interest fell 9.2% in the last reporting period, the 15.87 million shares sold short still account for 8.6% of APP’s available float.
It’s also worth noting the the stock’s Schaeffer’s Volatility Scorecard (SVS) sits at 72 out of 100, suggesting it has exceeded option traders’ volatility expectations in the last year.