Why Options Traders Love This Semiconductor Stock

Options traders are still targeting the equity today

Deputy Editor
Dec 18, 2023 at 12:28 PM
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Shares of semiconductor company Super Micro Computer Inc (NASDAQ:SMCI) were last seen 6.2% higher to trade at $318.79, and on track to turn in a fifth-straight daily win. The chip stock began to rise again on the charts following news that the company will offer rack scale air and liquid cooled solutions for Intel's (INTC) 5th generation Xeon processors for artificial intelligence (AI) and other computing software. Year over year, SMCI is now nearly 300% higher.

MAO SMCI Chart December 182023

Amid this positive price action, options traders speculated heavily on Super Micro Computer stock. The equity found a spot on Schaeffer's Senior Quantitative Analyst Rocky White's list of S&P 400 (IDX) stocks that attracted the highest weekly options volume over the past two weeks. According to White's data, 304,125 calls and 117,901 puts were exchanged over this two-week period. The most popular contract during this time period was the monthly December 290 call.

MAO Chart December 182023

Options traders are active today, too, with total options volume running at triple the intraday average volume. Of the top 20 most popular contracts, all but four are seeing new positions opening, with the most activity taking place at the weekly 1/5 200-strike call. 

Those looking to join these buyers can do so at a steal right now. SMCI's Schaeffer's Volatility Index (SVI) of 57% sits higher than just 8% of readings from the past 12 months, suggesting options players are pricing in low volatility expectations for the stock at the moment. 


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