Despite not being a long-term believer in SMCI, I picked up 25 Call options to play the current setup.
Entry price: $24.28
Current price $30.10
I'm in because:
1. 103+ million shorted shares - While this isn't a security I'd recommend purchasing outright.....it's absolutely NOT the right time to be short here! I think they're going to pay for this one!
2. Earnings report 8/11 - (was 8/3). Last report on May 5th was an upside surprise netting 24%+ return on May 6th.
3. Fundamental / Technical - We have favorable data here, clearly showing this security to be undervalued. Also, if the P/E ratio here is to be in line with similar companies, same sector....the price would need to exceed $39/share.
4. Order backlog - They have a significant backlog of orders, and are operating in full growth mode.
5. Put/Call Ratio - Currently at 0.17, which is awesome\~