AAOI is expected to rise significantly (target ~$150); strategy prioritizes capital appreciation over premium income.

I have placed three contracts on AAOI, i.e. Applied Optoelectronics. What I did was , I thought the stock was going to go up a lot , so I bought a $90 call option that expires on June 17, 2027.

You can see how I made this trade on September 30th. And now, as I'm making this video , check out my Robinhood account in just a few days. I have already made a profit of $1,535.

So, look, if I were to buy a covered call on this stock right now , since I'm very bullish on it, I need the possibility that its price will go up further. So, I don't want to go 'near the money' , because the main objective of this stock is growth, not income.

So, look at this. If I buy a covered call option now, and choose the November 20th expiration date , and buy 100 shares of AAOI, and go sell the call option , then all the premiums here are absolutely attractive.

I want the price to go up a lot. So, if I think the stock is worth $150, I'm willing to pay a much lower premium because I want to take full advantage of the profit. I originally bought the stock for about $100 per share.

So, for $100 to $150, I would personally make $50 profit. And I do n't care if the premium I get is very low, because I'm here for growth. I made a 15% profit on my Leap Option in just 3 days.