Super Micro Investors Load Up on $500 Puts as Shares Slump to Six-Month Low
Shares of the IT solution provider for artificial intelligence (AI), cloud and storage tumbled 16% to $520.50 on Wednesday after Super Micro's earnings missed the company's own guidance as gross margin shrank more than expected.
Gross margin fell to 11.2% in the fiscal fourth quarter ended June 30, from 17% a year earlier, the company said in a press release Tuesday after the market closed. Analysts, on average, expected 14.15%, according to estimates compiled by Capital IQ. Weaker margins and higher operating expenses dragged the company's earnings per share to $5.51, below its own guidance of $7.20 to $8.05.
(To see Super Micro's option chain analysis, click here.)
Put options that give the holders the right to sell Super Micro shares at $500 attracted the heaviest volume across 16 expiration dates that stretch through Dec. 18, 2026, data compiled by moomoo showed. That strike also had the most trading among options expiring in two days, with 16,560 contracts changing hands so far. That's more than 9 times the open interest.
The price of those puts climbed 67% or $3.69 to $9.20 as the stock price drops near the $500 strike price.
Wednesday's slump took the stock price below the lower line of the Bollinger Band, a technical indicator viewed by some chartists that the stock could be oversold, and the trend could turn bullish.
Before 1 p.m., fund outflows from SMCI outpaced inflows by $79.3 million. That trimmed this month's net inflows to $84.5 million.
(To see SMCI's fund flows, click here.)
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Moomoo Senior News and Community Manager
Former editor at Bloomberg, then Lazard Asset Management. Posts aren’t investment advice. Views are just mine.
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Laine Ford : buy