Bears are already moving in on the tech name
Super Micro Computer Inc (NASDAQ:SMCI) is trading down 13.6% at $35.13 this morning, after the AI server component said it plans to raise $7 billion in funding through equity and equity-linked finance offerings. This has landed the stock firmly on the short-sale restricted (SSR) list and headed for its lowest close in weeks.
The computer hardware concern is on track for its worst daily drop since March 20, though underlying support at $35 has emerged as support. SMCI has pulled back 31% from its June 2 peak of $51.40, but remains 22% higher for 2026. What's more, shorts are firmly in control, with 15.7% of the stock's float sold short.
Options traders have been more bullish than usual toward Super Micro Computer stock over the past 10 weeks. This is per the equity's 50-day call/put volume ratio of 3.13 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in the 82nd annual percentile. Should this sentiment begin to unwind, it could trigger more headwinds for the tech name.
In fact, bears are circling the equity today already, with 59,000 puts across the tape so far, triple the average daily pace. Seeing ample attention is the weekly 6/12 35-strike put, where sell-to-open activity is present.
Plus, SMCI sports a lofty Schaeffer's Volatility Scorecard (SVS). The reading comes in at 86 out of 100 suggesting the equity has consistently realized higher volatility than its options have priced in.