Calls are winning out, with 137,000 exchanged in comparison to 85,000 puts
Super Micro Computer Inc (NASDAQ:SMCI) stock is jumping to record highs today, after the company's stellar fourth-quarter results and full-year forecast exceeded analyst estimates. The artificial intelligence (AI) server maker's surge is lifting other AI-related stocks as well, including Nvidia (NVDA).
Jumping above recent pressure at the $500 level to never-before-seen levels, SMCI hit $554.44 at today's peak. The stock has since pared those gains, though still up 4.1% at $516.00 at last glance. Super Micro Computer stock has been booming since last January, up 612.9%. Since the start of this year, the shares are already up 81%.
Over in the options pits, SMCI has already seen 2.6 times the average daily options volume. Calls are winning out, with 137,000 exchanged in comparison to 85,000 puts. Expiring at the end of this week, the weekly 2/2 600-strike call is the most popular contract, with new positions being sold to open here.
Alongside the booming stock, short interest has been building, and now represents 10.8% of the stock's available float. However, its worth noting that the stock's 14-day relative strength index (RSI) of 87 sits firmly in "overbought" territory, meaning the equity may be overdue for some corrective movement on the charts, especially after its recent outperformance.