On August 20, Applied Optoelectronics rose 5.23% in regular trading, trading at $128.62/share, with turnover of $431 million. The stock reversed earlier session losses as the broader optical communication sector staged a recovery, with peer Lumentum climbing 4.54%.

The rebound follows a steep multi-day correction that saw AAOI plunge over 15% in a single session earlier this week amid a sector-wide selloff in AI infrastructure names. During that selloff, a notable $299,500 out-of-the-money call option order was placed on the August 21 expiry at a $148 strike, with the Call/Put volume ratio reaching 1.46, signaling institutional willingness to position for a bounce despite short-term turbulence.

Underlying fundamentals continue to provide support, with Q2 revenue surging 86% year-over-year to $191.9 million, data center business revenue exceeding $100 million for the first time, and 1.6T products nearing customer qualification with over $200 million in backlog orders.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)