Quantchabot has detected a new Bull Call Spread trade opportunity for APPLIED OPTOELECTRONICS INC. (AAOI) for the 30-Jan-2026 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
AAOI was recently trading at $29.24 and has an implied volatility of 91.70% for this period. Based on an analysis of the options available for AAOI expiring on 30-Jan-2026, there is a 34.19% likelihood that the underlying will close within the analyzed range of $29.37-$40.33 at expiration. In this scenario, the average linear return for the trade would be 11.11%.
Big 7.74% Change: After closing the last trading session at $27.14, APPLIED OPTOELECTRONICS INC. opened today at $28.20 and has reached a high of $29.80.
Trade approach: A movement as big as 7.74% 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 $29.24 on 30-Jan-2026. 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 $26.00 on 30-Jan-2026. Based on our risk-neutral analysis, there is a 65.01% 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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