Quantchabot has detected a new Bull Call Spread trade opportunity for APPLIED OPTOELECTRONICS INC. (AAOI) for the 1-Aug-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AAOI was recently trading at $27.78 and has an implied volatility of 96.70% for this period. Based on an analysis of the options available for AAOI expiring on 1-Aug-2025, there is a 34.40% likelihood that the underlying will close within the analyzed range of $27.81-$32.00 at expiration. In this scenario, the average linear return for the trade would be 10.56%.
Big 7.51% Change: After closing the last trading session at $25.84, APPLIED OPTOELECTRONICS INC. opened today at $26.41 and has reached a high of $27.88.
Trade approach: A movement as big as 7.51% is a significantly bullish indicator, so this trade is designed to be profitable if AAOI maintains its current direction and does not revert back to pricing on the bearish side of $27.78 on 1-Aug-2025. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bullish strategy, the trade would be profitable if APPLIED OPTOELECTRONICS INC. closes at or above $27.35 on 1-Aug-2025. Based on our risk-neutral analysis, there is a 54.74% likelihood of this return.
Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.
To analyze this trade in depth, please visit the Quantcha Options Search Engine.
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