AAOI is an interesting play opportunity. I will have to watch this one closely, because the short term chart looks like it has potential to go either way. This has been in a bearish market for the past year. This had a strong 3 day drop from around 42 to 32. It has consolidated between 30-34 for the past couple weeks after this drop. The last trading day formed a doiji signifying an attempt to start running back up or dropping back to the 30 support. If 30 cracks this will likely test the 25-28 support area. With the high short float, I'm looking for puts on the rundown back to 30. I will be looking for entry 33-33.50 with a SL around 34.
I've read a lot of arguments that eat away at all of the upside that was expected for 2H18. Coupled with trade restlessness and some other indicators, 1H19 looks like it might be rough. I feel like AAOI has said some good things the last few weeks, but not anything I'd equate to "armor" to hold strong against downward pressure and market forces. I'm waiting for a drop down to $28 to initiate a small, short term swing trade. I agree that it can go either way at this point, but I lean towards the downside because of its history and short float.