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Super Micro Call Options Volume Jump as Stock Rebounds After Shipment Data

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Luzi Ann Santos wrote a column · Oct 7 11:26
$Super Micro Computer (SMCI.US)$ saw heavy trading in call options as the stock jumped 17% after the company reported that it's shipping more than 100,000 graphic processing units (GPUs) a quarter.
The GPUs were deployed for some of the largest artificial intelligence (AI) factories ever built, and other chip scale packages, the company said in a press release posted on its website Monday. The company also said more than 2,000 liquid cooled racks have been delivered since June.
Source: moomoo mobile app
Source: moomoo mobile app
(To see SMCI's options chain on the moomoo app, click here. For the US options market page, click here.)
More than 47,000 call options that give the holders the right to buy the stock at $50 each by the end of this week changed hands. That makes the contract the most active among options tied to SMCI. The volume is now more than five times the latest open interest, according to exchange data tracked by moomoo.  
The price of those $50 calls soared more than 1,000% after the stock price rally boosted the odds that the contract could be in-the-money before it expires in four days.
SMCI rebounded this month after touching the lowest since January just days earlier. Before Monday, the stock has faced headwinds after the IT solutions provider for AI, cloud, storage and 5G said on Aug. 28 that it's delaying filing its annual report.
Source: moomoo mobile app
Source: moomoo mobile app
While the company said it hasn't changed its results for the fiscal year ended June 30, Bloomberg Intelligence analyst Woo Jin Ho said last month that the stock could face sales uncertainty until SMCI affirms its 2024 financial report or updates its 2025 outlook.
After Monday's press release, the Bloomberg Intelligence analyst said the shipping data suggests customer demand is "robust and hasn't been dented by the company's internal stumbles."
The company would likely have a good foundation for meeting its fiscal first quarter sales guidance midpoint of $6.5 billion, assuming that 1,500 of the 2,000 liquid cooled racks were shipped at roughly $3 million a rack, according to Bloomberg.  
Fund inflows into SMCI outpaced outflows by $305 million. But amid stock rally, technical indicators tracked by moomoo showed neutral sentiment. Seven of the 15 gauges, including the oscillator, are showing that SMCI may be overbought, and the trend could turn bearish. Only two are positive and the rest are neutral.

Source: moomoo mobile app
Source: moomoo mobile app
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Luzi Ann Santos
Moomoo Senior News and Community Manager
Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
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