A review committee found no evidence of fraud or misconduct among its leaders
Super Micro Computer Inc (NASDAQ:SMCI) stock added a whopping 28.7% last session, after the server company said a review committee found no evidence of fraud or misconduct among its leaders. This follows Ernst & Young’s resignation as its auditor over governance and board independence disagreements, which preceded the shares’ Oct. 30 bear gap of 32.7%.
SMCI was last seen trading near breakeven at $41.65, and still sports a healthy 46.5% year-to-date lead. The security is bouncing off a Nov. 15, 52-week low of $17.25, but will now face resistance from the $50 region, which has been capping price action since late August.
Super Micro Computer stock remains popular with options traders, with 7,594,771 calls and 4,003,627 puts exchanged in the last 10 days. This is per Senior Quantitative Analyst Rocky White’s list of names that attracted the most options volume in that two-week period, with the November 20 call standing out as the most popular contract for SMCI.
Options bulls are doubling down in today’s trading. So far, more than 596,000 calls have already crossed the tape, which is double the average intraday volume. The most active contract is the weekly 12/6 50-strike call, where positions are currently being opened.
Short sellers are running for the exits, with short interest down 13.1.% over the past two reporting periods. There’s still plenty of pessimism left to unwind, however, as the 87.62 million shares sold short make up a hefty 17.50% of the security’s available float.
It’s worth noting that the stock’s elevated Schaeffer’s Volatility Scorecard (SVS) of 96 out of 100 implies a tendency to outperform volatility expectations — a boon for premium players.