SMCI is testing a key level today as call traders cheer
Super Micro Computer Inc (NASDAQ:SMCI) stock is trying to prop up the Nasdaq this morning, up 12.6% to trade at 28.73. The tech hardware concern reported preliminary fourth quarter revenue that exceeded expectations. The company also hiked its adjusted gross margin outlook due to massive demand and a record-setting backlog.
The report has tech hardware peers Dell Technologies (DELL) and Hewlett Packard Enterprise (HPE) up 2.8% and 1%, respectively. Today's bull gap has the equity testing its year-to-date breakeven level. Already in 2026, the shares have traded as high as $51.40 and as low as $19.48.
A short squeeze is in play, with bearish bets up 38.6% in the past two reporting periods. Currently 18.3% of the stock's total available float is sold short.
Options traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have preferred long calls over puts, though. More than 107,000 calls were bought to open during the past 10 days across these exchanges, compared to roughly 20,000 puts. The resultant 10-day buy-to-open put/call ratio of 5.35 sits four percentage points from an annual high, indicating that such a skew is rare in the last 52 weeks.