$Applied Optoelectronics(AAOI)$ Bullish setup on AAOI. The company makes fiber-optic networking products for AI data centers, including 800G optical transceivers and CATV networks. Quarterly revenue is running above $125M with expanding gross margins, so it is a high-beta AI hardware name.
Technically, the weekly macro wedge breakout is being retested. Price is holding the $128.00–$129.00 support area near the yellow structural pivot line, and RSI is curling higher off the 1W base.
Options flow shows heavy institutional call buying. Oct 9 $155C at 20.3% OTM with a $98.9K sweep, Oct 16 $105C at 19.1% ITM with a $514K split, Jun 2027 $185C at 43.6% OTM with $1.3M+ in multi-sweeps, and Jan 2027 $150C at 16.5% OTM with a $523.6K floor block.
Key levels I am watching: bulls need to hold $120.00 and claim $135.00, which would put $155.00 and $185.00+ in play. Bears would need a breakdown under $110.00 to invalidate the weekly retest. Wall Street targets sit in the $165.00–$185.00+ range.
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