Applied Optoelectronics (AAOI) stock surged 19.12% intraday on Wednesday, driven by significant bullish options trading activity. According to reports, the volume of call options trading for AAOI was unusually high, reaching 9,549 contracts, which is three times the expected level. Additionally, the implied volatility for AAOI options increased by over one point to 92%.
The surge in bullish options activity suggests that traders are betting on a potential upside move for Applied Optoelectronics' stock in the near future. This optimism could be fueled by positive expectations or rumors about the company's performance or future prospects.
Applied Optoelectronics was also among the top performers in the small-cap space on Wednesday, outpacing the broader market indices. The company's stock led the pack of small-cap companies with market capitalizations ranging from $1 billion to $6.7 billion, indicating strong investor interest in the company.
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