We present radio observations at three frequencies and contemporaneous opti
cal monitoring of the peculiar BL Lac object AO 0235+164. During a three-we
ek campaign with the VLA we observed intraday variability in this source an
d found a distinct peak which can be identified throughout the radio freque
ncies and tentatively connected to the R-band variations. This event is cha
racterized by unusual properties: its strength increases, and its duration
decreases with wavelength; and it peaks earlier at 20 cm than at 3.6 and 6
cm. We discuss several generic models (a "standard" shock-in-jet model, a p
recessing beam, free-free-absorption in a foreground screen, interstellar s
cattering, and gravitational microlensing), and explore whether they can ac
count for our observations. Most attempts at explaining the data on 0235+16
4 require an extremely small source size, which can be reconciled with the
10(12) K inverse Compton limit only when the Doppler factor of the bulk flo
w is of order 100. However, none of the models is completely satisfactory,
and we suggest that the observed variability is due to a superposition of i
ntrinsic and propagation effects.