Applied Optoelectronics Quick Rebound Attracts Sellers

Applied Optoelectronics Inc AAOI shares are trading higher by $7.00 (15 percent) at $47.82 in Thursday's session. The catalyst for the rally is Wednesday afternoon's announcement that the company expects Q1 results to exceed the guidance.

The stock, which had lost a third of its value since it peaked on March 27 at $60.19 and bottomed at $40.28 Wednesday, recouped half of that loss overnight.

However, after a higher open it quickly peaked at $50.00 and reversed course, as longs trapped in the vicious decline are attempting to lighten up on the stock.

So far, the ensuing decline has taken AAOI to $46.82, which is well above the top of Wednesday's range ($42.49) and rebounded back into the $47.00 handle.