$SUPER MICRO COMPUTER INC(SMCI)$ is a perfect example of what happens when you become greedy.


Super Micro is one of the most volatile large cal stocks in the exchange. With that, it's option premium is super high. Some investors sell risky put options to make the premium.


On many occasions, this has worked. However, recently following its 20% plunge, the value of the put options soared by 10-20x. Investors who sold out option are facing huge losses and option excersise, meaning they have to buy and own the shares, which for a $450 per share stock, can be quite expensive to own.


You can simply search up Super Micro computer stock and go into the posts. You will se traders posting 10x losses. For example, some people sold put options at $4 and now it's $40. 


So, the moral is to never be greedy when investing and calculate potential losses.

Even when an opportunity seems perfect, but is risky can can result is potentially huge losses, DO NOT take the trade.

When investing, never have the hope to gamble and make instant money. Because you will lose it all.

I beg you stop gambling all your money. 

I've been there before. Trust me, it hurts. I want to help you invest. I want you to succeed. 

Please simply consider to follow me so I can help you with more investing. I take my time and effort to write these posts. Thank you.

# SMCI -20%: Will You Short Like Hindenburg?

Modify on 2024-08-30 18:34

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  • tigerat98
    ·08-30
    Great sharing. Thanks
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