Option Witch | Trade Super Micro's Strong Outlook, Delayed Annual Report Using Spread Strategies

$Super Micro Computer(SMCI)$ stock is back to insight as shares had climbed more than 35% as of Tuesday and rose 6% in overnight trading on Wednesday. The rally was primarily driven by two pieces of good news.

Super Micro Computer Inc. gave an aggressive long-term revenue outlook late Tuesday. The company also expects to submit its delayed annual filing by the Feb. 25 deadline.

Sales will be $40 billion in the fiscal year ending in June 2026, the company said Tuesday in a statement, which also provided preliminary fiscal second-quarter results. Analysts, on average, estimated $30.7 billion for fiscal 2026, according to data compiled by Bloomberg.

Last week, the company said it had reached full production availability for products containing Nvidia Corp.’s new Blackwell B200 chips.

However, the delay in submitting its 10-Q report to the SEC can still create uncertainty and concern among investors about the company's financial health, which may lead to sudden movements in its stock price.

For the fiscal second quarter, Super Micro said preliminary results show sales of $5.6 billion to $5.7 billion. Analysts, on average, estimated $5.81 billion. Profit, excluding some items, was about 59 cents per share in the period ended Dec. 31, the company said. Wall Street expected 64 cents.

Super Micro Computer Inc. has been highly volatile lately, which makes it a good candidate for options spread strategies that can help hedge risk or capitalize on momentum. Here are a few spread strategies you might consider, depending on your market outlook:

1. Bull Call Spread (Bullish)

• Best for: Profiting from a moderate price increase while limiting risk.

• Setup: $SMCI Vertical 250314 40.0C/50.0C$

  • Buy a $40 call (e.g., March expiration)

  • Sell a $50 call (same expiration)

• Max Profit: $715

• Max Loss: -$285

• Breakeven: $42.85

  

2. Bear Put Spread (Bearish)

• Best for: Profiting from a limited downside move.

• Setup: $SMCI Vertical 250314 35.0P/40.0P$

  • Buy a $40 put

  • Sell a $35 put

• Max Profit: $312.5

• Max Loss: -$187.5

• Breakeven: $38.12

  

3. Calendar Spread (Volatility Skew Play)

• Best for: If you expect volatility to decrease in the short term but increase later.

• Setup: $SMCI Calendar Spread 250221/250321 40.0P/40.0P$

  • Sell a near-term $40 call (e.g., Feb)

  • Buy a longer-term $40 call (e.g., March)

• Max Profit: $374.9

  

Which Strategy Should You Use?

• Bullish? → Bull Call Spread

• Bearish? → Bear Put Spread

• Playing volatility decay? → Calendar Spread

Would you like help tweaking these strategies for your risk tolerance or expected market conditions?