🔴 Trading--Leveraged Equity ETF (AAOG) is trading 6.94% down as AAOI reverses after earnings

AAOG is trading at $4.02 (-6.94%) as Applied Optoelectronics (AAOI) reverses after earnings.

• AAOG provides 2x daily exposure to AAOI, making its reversal the primary catalyst.
• AAOI reported record Q2 revenue of $191.9 million and non-GAAP profit, but posted a $22.8 million GAAP net loss and declining gross margins, encouraging profit-taking after its earlier rally.
• Broader markets are relatively mixed; elevated post-earnings volatility is amplified by daily leverage.