Big Money's Play: Super Micro Computer's Rise
Supermicro Computers Options: A Look at What the Big Money is Thinking
Supermicro Computers, a leading provider of high-performance server solutions, has been gaining attention in the options market lately. The company's shares have been on a tear, rising over 100% in the past year alone, and the options market is reflecting this optimism.
According to data from Benzinga Pro, the biggest money is on the long side of the options market when it comes to Supermicro Computers. The most heavily traded options contracts are the weekly $40 calls, with over 12,000 contracts traded in the past week alone.
The $40 calls are particularly interesting, as they have seen a significant increase in trading activity over the past week. The contract has traded over 10,000 times in the past seven days, with the majority of those trades being buys.
This surge in buying activity is likely due to the company's strong earnings report, which was released earlier this month. The company's revenue and earnings per share both exceeded expectations, and the stock surged over 15% in the aftermath.
Other options contracts that are seeing significant trading activity include the weekly $42 calls and the monthly $45 calls. These contracts have traded over 5,000 times and 3,000 times, respectively, in the past week.
On the short side, the biggest money is on the $35 puts, with over 2,000 contracts traded in the past week. This is likely due to the company's recent volatility, as the stock has seen a significant decline in the past month.
Overall, the options market is reflecting the optimism surrounding Supermicro Computers. The company's strong earnings report and growing revenue have sparked a surge in buying activity, with the majority of traders betting on the stock to continue its upward trend.
For those looking to get in on the action, the weekly $40 calls are a popular choice, with over 12,000 contracts traded in the past week. However, traders should be cautious, as the stock has seen significant volatility in the past month, and there is always a risk of a sudden decline.