ARLO and AAOI are both moving higher, but trading under $20
For Schaeffer’s Cheap Seats: Stocks Under $20 segment, we’re taking a look at Arlo Technologies Inc (NYSE:ARLO) and Applied Optoelectronics Inc (NASDAQ:AAOI), both of which are making sizeable intraday moves.
Shares of Arlo Technologies, a maker of wireless surveillance cameras that went public in October 2018, were last seen up 3.5% at $12.27, following the company’s newly adopted $50 million stock repurchase program. Today’s gain helped ARLO leapfrog the +25% year-to-date level. Now standing 28.3% higher in 2024, they still remain well below their mid-July 52-week high of $17.64.
It’s worth noting that short interest has been building, up 21.5% over the last month, and now represents 6.2% of the stock’s available float. It would take shorts nearly more than six days to cover, at Arlo Technologies stock’s average pace of trading.
Applied Optoelectronics is a firm that specializes in fiber-optic networking products. The stock was up 18% at $16.59 at last glance, after showing off its 1.6T OSFP DR8 LPO modal — which can double the data rate of current interfaces — at the European Conference on Optical Communications (ECOC). On the charts, AAOI was able to break above the $16 level that kept a lid on shares in late-February. Year over year, the equity is up 75.8%, but an intriguing entry point could be flashing as it’s down 14.6% in 2024.
Options traders are excited about the reveal. So far today, 13,000 calls and 1,274 puts have crossed the aisle, which is 6 times higher than the average intraday volume. New positions are being bought to open at the most popular contract, the October 20 call.