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Super Micro Pole-Vaults Over Tesla to Be Second Most Active Stock Option as Auditor Quits
$Super Micro Computer (SMCI.US)$ pole-vaulted over $Tesla (TSLA.US)$ to become the second most active stock option amid increasing demand for protective put options that could shield the holder from further downside potential.
SMCI shares gapped down 30% to the lowest level since January after the IT solutions provider that sells liquid-cooling solutions to $NVIDIA (NVDA.US)$ said its auditor, Ernst & Young, resigned. A filing with the Securities and Exchange Commission showed that the auditor received additional information that "raised questions, including about whether the company demonstrates a commitment to integrity and ethical values."
An auditor change further delays SMCI's 10-K filing with the SEC for its fiscal year that ended June 30, "potentially fueling more doubt in the validity of its past financials," Bloomberg Intelligence analyst Woo Jin Ho said in a note.
More than 1.32 million contracts changed hands as of 12:21 p.m. in New York Wednesday, making SMCI the second most-active stock options, just behind $NVIDIA (NVDA.US)$'s 1.42 million contracts, exchange data tracked by moomoo showed. More than half of the SMCI trades are for put options, the heaviest volume of which are those that give the holders the right to sell the stock in two days at $42.50 each.
The stock's slump to $33.31 on Wednesday meant put options that are expiring on Friday with a strike price of $34 or higher are now in the money. The most heavily traded contract, the $42.50 put, saw its price jump more than 2,600%.
SMCI faces increasing probability of getting delisted, as the company grapples with the delay in its regulatory filing and the challenge of finding a new auditor that would be willing to step into a "a situation that Ernst and Young was not comfortable with," Bloomberg quoted a Wedbush analyst as saying.
Can SMCI stage a turn around? Share your thoughts in the comments section and if you have a price forecast for the stock, please vote below.
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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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JCpennyStonks : NPC
Dan’l : Sketchy family ties and conflicted interests amongst those involved with $Super Micro Computer (SMCI.US)$, all under the shadows of the same roof no less… what could possibly go wrong?
stderr Dan’l : Maybe they will get Hindenburg to do the audit
Zoooi3 :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Alen Kok : o
NoDragonsPlz : to the moon?
JATrader : From the voting can sense there are still a lot of ppl bullish and stuck in this counter. What it means to be honest or what do you interpret.
Adrianlim90 : 1
104247826 :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Renato bal : That the SMCI can turn around I think there is no doubt about, the bottom line is when and at which price? For a company this magnitude this delay in filing the 10-K form really raises suspicions about what the heck is going on.
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