SMCI Falls 12% as Options Traders Pile Into Puts

By Daniel Okafor

Super Micro Computer (BATS: SMCI) fell about 12% on Nov. 12 and traded near $26.70, just above its 60-day low of $25.81, as options money leaned hard toward puts. The morning session had already produced $2.5 million in premium, and 80% of it sat on the bearish side: $2.0 million in puts against $486,000 in calls, according to GTA Terminal data as of 9:47 AM ET. The put/call volume ratio stood at 1.5.

What does the options flow say?

An 80% put share is a lopsided read for a single morning. Traders were paying four times more premium for downside protection than for upside participation. That ratio matters because it measures conviction, not just volume. When premium splits this unevenly, institutions are usually hedging existing positions or betting directly on further declines.

The put/call volume ratio of 1.5 confirms the tilt. Contracts betting on a fall outnumbered calls by three to two.

How much trading moved off exchange?

Dark pool activity ran above its recent norm in the sessions before the slide. GTA Terminal reports the off-exchange share of SMCI trading at:

• Nov. 11: 44.6% (18,655,659 shares)
• Nov. 10: 33.6%
• Nov. 9: 41.9%
• Nov. 6: 40.5%
• Nov. 5: 43.6%

The five-session average sits near 41%. Elevated dark pool share often signals institutional accumulation or distribution away from public order books. Coming before a 12% drop, the reading invites the less comfortable interpretation: large players were repositioning quietly while the stock still held above $30.

Where do the technicals stand?

The daily chart shows a full downtrend. Price trades below four key moving averages at once:

• 20-day SMA: $31.51
• 50-day SMA: $36.75
• 100-day SMA: $34.09
• 200-day SMA: $32.56

The 20-day average has also slipped beneath the 200-day, a structure technicians read as confirmation of sustained weakness rather than a short dip. The stock closed at $30.43 on Nov. 11, then opened the Nov. 12 session in a range of $26.30 to $29.00.

Volume tells its own story. By mid-morning it had already reached roughly 1.1 times the 20-day average, meaning sellers were unloading shares into the decline rather than waiting for a bounce.

The Relative Strength Index (14) sits near 36. That level is weak but not yet oversold. There is technical room left for further downside before mean-reversion buyers typically step in.

Which levels decide the next move?

Three prices now frame the trade:

• $32.56 — the 200-day SMA and upper resistance
• $31.51 — the 20-day SMA and first resistance
• $25.81 — the Nov. 5 low and 60-day support

GTA Terminal lays out the trigger conditions plainly. A daily close under $25.81 with put-heavy flow continuing would confirm the bearish read. A move back above $31.51 accompanied by returning call money would invalidate it.

Until one of those prints arrives, the burden of proof sits with the bulls. The stock needs to reclaim more than 18% of ground just to reach first resistance at $31.51, while support at $25.81 sits less than 4% below the current price.

Data: GTA Terminal. This article is not financial advice.