I have purchased August $67 puts on Super Micro Computer Inc. (SMCI, whose name sounds straight out of 1982). It has rallied about 200% over the past three months, largely out of joy that it isn’t going to get delisted (which was a real concern then). My view is that the gap at 65.86, as well as the descending triangle, make a formidable right triangle top, and that this obscene rise in price is close to an end. I might be a day or two early with this one, but that gap level is the key.
Here is the longer view, which also illustrates the explosive rise in volume as people fell all over themselves to buy into this company, whose narrative these days is selling servers to AI outfits.
