To The Moon

SMCI has been making headlines with a dramatic rebound—surging 16% on Monday and climbing another 30% on Tuesday. The company’s announcement of a compliance plan and the appointment of a new auditor have sparked investor optimism.

But is this the beginning of a true turnaround or just a temporary bounce?

Will SMCI face delisting risks, or is now the time to hold steady?

What’s your take—exit now or set your sights on a target price for SMCI?

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1. @TIGER V: SMCI: Poised for a Comeback Amid Nasdaq Compliance Efforts

Key Points:

Overview of Market Performance

$SUPER MICRO COMPUTER INC(SMCI)$ saw its stock soar by an impressive 15% on Monday, driven by renewed investor confidence following the company’s strategic steps to address its compliance issues with Nasdaq. The appointment of BDO USA, P.C. as its independent auditor and the submission of a detailed compliance plan signaled the company’s commitment to meeting regulatory requirements. This news catalyzed a surge in trading activity, particularly in options markets, reflecting heightened interest and speculative positioning by investors.

Options Trading Heats Up

Call Contracts Activity: The most actively traded calls were for a strike price of $20, expiring on November 15. These saw a total volume of 29,072, with an open interest of 7,229 contracts. This indicates bullish sentiment among investors anticipating further upward momentum in SMCI’s stock price.

Put Contracts Activity: Interestingly, puts at a strike price of $18, expiring on the same date, also recorded significant trading activity, with a total volume of 31,035 and an open interest of 7,097 contracts. The high activity in puts suggests some investors are hedging against downside risk or capitalizing on volatility.

Outlook and Insights

Short-Term Outlook: SMCI’s options activity suggests investors should brace for near-term volatility. High call and put volumes signal potential sharp movements in either direction. The stock is likely to remain highly sensitive to updates regarding compliance milestones.

Medium to Long-Term Outlook: If SMCI successfully regains compliance with Nasdaq requirements, it could pave the way for sustained recovery in stock price and enhanced investor confidence. The company's efforts to improve corporate governance through BDO USA’s oversight will likely bolster institutional interest in the long run.

How to Invest and Benefit from This News

• Leverage Volatility: Options traders can capitalize on heightened implied volatility by exploring strategies like straddles or strangles, which profit from significant stock price movements in either direction.

• Position for the Long Term: For equity investors, the 15% surge may seem aggressive in the short term, but SMCI’s progress toward compliance could signal a strong recovery trajectory. Buying during dips might provide a favorable entry point for long-term gains.

• Monitor Key Updates: Investors should stay informed about the company’s timeline for filing its overdue reports. Successfully meeting Nasdaq requirements would significantly reduce regulatory risks and attract more institutional investors.

Conclusion

SMCI’s recent surge is a clear sign of renewed optimism, but the path to full recovery hinges on its ability to deliver on its compliance commitments. Investors should adopt a balanced approach, combining strategies to capitalize on short-term volatility while positioning themselves for long-term potential gains. With Nasdaq compliance on the horizon, SMCI remains a stock to watch closely.

2. @Madluvyz:

Key Points:

Selling a 17/16 put spread on SMCI 20 Dec expiry. 

Clear indicators of a bounceback, 17 is at the lowest support lvl at the nearest bottom regression line. 

My rule of thumb, at lest 20% profit from every trade. 

[Miser]   In this trading game for the long run.

@madluvyz - Specialist in sell options trading and swing trading.

3. @highhand:

Key Points:

This is dead cat dead dog dead mouse bounce.

Once there's a whiff of accounting fraud, this stench will never go away...  Even if its not true, why entangle yourself in this complicated web. I can invest or trade safely other stocks. 

However, if you feel like gambling, can buy some puts or calls to limit your risk and have some fun. Not worth i think since volatility is high, and premiums and expensive, but just an idea. 

4. @Des79:

Key Points:

All the big must receive the inside news. That they are holding and topping up the stock. We just need to wait for  news by next week. Monday we should know the outcome. Don't panic la. The dark cloud is going to be over.  It maybe bargain buy. 

5. @交流道的小赢熊:

Key Points:

Definitely not a dead cat bounce. It is still a legit company with strong revenue and growth prospects. Take this opportunity to accumulate a position. But still do your own DD!

6. @100plus:

Key Points:

Short term and long term I believe it will surge. If they manage to overcome all the issues, when good news announced. It will skyrocket. 

Questions for you:

Is it a comeback or a dead cat bounce?

Will SMCI delist? Exit ASAP or not?

What's your target price for SMCI?

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⏰Duration

• 27 Nov (24pm EDT)