Spotlight on Applied Optoelectronics: Analyzing the Surge in Options Activity

Investors with a lot of money to spend have taken a bullish stance on Applied Optoelectronics AAOI.

And retail traders should know.

We noticed this today when the positions showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with AAOI, it often means somebody knows something is about to happen.

Today, Benzinga's options scanner spotted 11 options trades for Applied Optoelectronics.

This isn't normal.

The overall sentiment of these big-money traders is split between 63% bullish and 27%, bearish.

Out of all of the options we uncovered, there was 1 put, for a total amount of $34,515, and 10, calls, for a total amount of $450,178.

Predicted Price Range

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $10.0 and $17.5 for Applied Optoelectronics, spanning the last three months.

Analyzing Volume & Open Interest

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Applied Optoelectronics's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Applied Optoelectronics's substantial trades, within a strike price spectrum from $10.0 to $17.5 over the preceding 30 days.

Applied Optoelectronics Call and Put Volume: 30-Day Overview

Largest Options Trades Observed:

About Applied Optoelectronics

Applied Optoelectronics Inc is a provider of fiber-optic networking products for the Internet data center, cable television, telecommunications and fiber-to-the-home end markets. The company focuses on designing and manufacturing a range of optical communication products from components, to subassemblies, and modules to complete turn-key equipment. Demand for Applied Optoelectronics is driven by bandwidth demand in end markets. Through direct sales personnel, and manufacturing teams in the United States, China, and Taiwan, the company coordinates with customers to determine product design, qualifications, and performance. The company derives maximum revenue from Taiwan.

Having examined the options trading patterns of Applied Optoelectronics, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

Current Position of Applied Optoelectronics

• Currently trading with a volume of 2,103,836, the AAOI's price is up by 9.71%, now at $13.45.
• RSI readings suggest the stock is currently may be overbought.
• Anticipated earnings release is in 64 days.

What Analysts Are Saying About Applied Optoelectronics

A total of 3 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $13.666666666666666.

• Maintaining their stance, an analyst from Rosenblatt continues to hold a Buy rating for Applied Optoelectronics, targeting a price of $15.
• An analyst from B. Riley Securities persists with their Neutral rating on Applied Optoelectronics, maintaining a target price of $9.
• An analyst from Raymond James upgraded its action to Outperform with a price target of $17.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Applied Optoelectronics options trades with real-time alerts from Benzinga Pro.