Sentiment Signal Doesn't Look Good for SMCI

Semiconductor stock Super Micro Computer Inc (NASDAQ:SMCI) has been chopping higher since an 18-month low of $19.48 on March 23. Plenty of long-term moving averages linger above as potential pressure, including the 180-day trendline. Plus, if history is any indicator, the stock could soon make a move back below recently reclaimed $30 level. 

Super Micro Computer stock's 10-day call/put volume ratio of 4.63 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands higher than 94% of readings from the past year. This marks the seventh time in the last three years that the equity's 10-day buy-to-open put/call ratio crossed over 1.0 and hit the 90th percentile. Per Schaeffer's Senior Quantitative Analyst Rocky White, SMCI was lower one month later 71% of the time after these signals with an average 15.1% loss. 

It's worth noting that SMCI's Schaeffer's Volatility Scorecard (SVS) sits an a reasonably high 87 out of 100. This means the stock has tended to outperform options traders' volatility expectations on an annual basis.