Options/AAOI

AAOIApplied Optoelectronics, Inc.

Options Analysis Report•SEMICONDUCTORS & RELATED DEVICES

Market Cap $9.0B|NASDAQ

● 2026-08-28$106.23

NEUTRAL

Analysis: 2026-08-27 EOD data

1Y +339.0%YTD +168.3%7D -14.9%

Options Vol

35,288

30D

Implied Move

±26.3%

IV Rank

AAOI Options Overview

IV is elevated. Conditions favor premium sellers.

REWARDS

RISK ANALYSIS

Snowflake Analysis

Favorable conditions for premium sellers

Learn

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AAOI Gamma Walls

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AAOI Hedge Radar

Hedge window open

Full Hedge Radar

Fragility reads high; protection is priced cheap. Neither axis is a forecast — this is where AAOI sits on protection cost vs. fragility today.

Protection is priced in the cheap band (1.44) — downside puts carry 0.5 IV points more than at-the-money, and options are pricing vol 34% below what the stock has actually been realizing, measured against this name's own rolling 19-trading-day realized moves (485 overlapping windows). Fragility reads fragile (7.5): it is trading 14% above its hedge wall on a wall graded HIGH for reliability, a name whose wall relationship is measured as inverted, and its realized-vol regime is stable.

Protection cost

1.44/ 10cheap

Basis: cross_sectional

Fragility

7.50/ 10fragile

Basis: per_ticker

Value

Is IV priced right?

5.4

ExpensiveCheap

Measures whether options are cheap, fair, or rich relative to historical and peer

levels.

Risk Checks4/9 checks passed

IV Rank

≤35%

IV Rank 94.5% — elevated vs history

IV/HV Ratio

<1.05x

IV/HV 0.68x — IV ≤ HV

Sector Relative≤50%

Sector percentile 93% — above sector median

Term Structure

<1.1x

Front/Back 0.93x — contango

Skew Normal

<1.25x

Put/Call IV 1.16x — elevated

Absolute IV

<80%

ATM IV 96.2% — crisis-level IV

Spread-Adjusted Value

<80%

Effective IV 117.1% (ATM 96.2% + spread 10.4% + bias) — expensive

Execution Efficiency

<3.0%

Total drag 14.72% (spread 10.43% + slippage 4.29%) — high friction

Vega Efficiency

≥5.0

Vega efficiency 12.01 (vega 12.524 / spread 10.43%) — efficient

Sentiment

Bullish or bearish?

6.5

BearishBullish

Analyzes

put/call ratios

open interest skew

, and flow direction to determine market bias.

Risk ChecksNeutral - Weak signal (Conviction: +6%, Raw: -6%)

Flow Direction

|net sentiment| ≥25%

Conviction-weighted: +6% (neutral) — Raw: -6%

OI Skew Magnitude

≥15%

|OI skew| 4.8% — balanced

Volume-OI Alignment

Same sign, |vol skew| ≥10%

Vol skew +39.6%, OI skew +4.8% — aligned

Conviction Quality

≥2/3 conditions

0-DTE 47%, far-OTM 15%, avg DTE 30

OI Momentum

|change| ≥3%

OI change +0.0% (5d) — stable

Smart Money Flow

|weighted flow| ≥20%

ITM: -3%, ATM: +32%, OTM: -22% — bullish (ITM/ATM divergent)

Sector Relative≤40% or ≥60%

Sector P/C percentile 46% — neutral vs sector

Activity

Unusual activity?

3.5

QuietActive

Detects volume surges,

block trades

, and unusual options activity that may signal moves.

Risk Checks1/8 checks passed

Volume Surge

≥1.5x

Volume 0.5x avg — normal

Turnover Rate

≥15%

Vol/OI 10.7% — normal turnover

Multi-Day Persistence

≥2 days

1 day(s) elevated — may be one-day event

OI Build

≥5%

OI change -11.2% (5d) — unwinding

Sector Relative≥60%

Sector activity percentile 85% — very active vs sector

Trade Quality

≥30%

Large trade volume 20% — mixed

Execution Urgency

≥60%

Aggressive execution 22% — patient

Flow Conviction

≥30

Conviction +6 (bullish) — mixed

Liquidity

Can I trade efficiently?

4.4

IlliquidLiquid

Evaluates

bid-ask spreads

, volume depth, and open interest for trade execution quality.

Risk Checks3/8 checks passed

Tradeable Spread

≤5.0%

Spread 10.4% — wide

Adequate OI

≥10,000

OI 330,727 — deep

Active Volume

≥500

Volume 35,288/day — active

Reasonable Cost

≤$0.50

$0.52 to cross — expensive

Strike Coverage

≥5 strikes

0 liquid strikes — limited options

Sector Relative≤40%

Sector spread percentile 96% — much wider than sector

Order Book Depth

≥100 contracts

Depth 299.29999999999995 contracts (bid:131.2 ask:168.1) — adequate

Execution Quality

<1.0%

Avg slippage 4.29% — poor

Timing

Is now a good time?

7.7

RiskyFavorable

Considers earnings proximity,

time decay

, and event calendar for optimal entry timing.

Risk Checks7/9 checks passed

Term Structure Clarity

|slope| ≥5%

Slope -6.7% — contango

IV Percentile Clarity

<30 or >70

IV percentile 94% — seller opportunity

Event Detection

≥10pts kink

IV kink -1.6pts — no clear event

Theta/Vega Clarity

<0.5 or >2.0

θ/ν ratio 56.82 — favors income trades

Expiration Distribution

≥3 expirations

4 liquid expirations — flexible

Event Risk

≥60% (safe)

safe window: No events detected

Spread Momentum

<1.2 ratio

Spread ratio 1.00x — stable

Flow Momentum

≥25% strength + ≥50% consistency

Flow +6% @ 53% consistency — unclear

Smart Money Timing

≥40 composite score

Score 50 (ITM 20% + inst 20%) — moderate institutional

Directional Strategy Fit

Option Buyers

Long Calls6.0

bullishIV fair, bullish flow

Long Puts4.9

bearishIV fair, bullish flow

Premium Sellers

Cash-Secured Put5.7

bullishIV fair, bullish flow

Covered Call4.6

bearishIV fair, bullish flow

For educational purposes only. Not investment advice.

The Options Desk tracks the move options price into every US earnings report the week of Aug 31, next to how much each stock has actually moved on its past prints — plus the SPY, QQQ and IWM expected ranges and the gamma walls that box them in.