Supermicrocomputers (SMCI) – November 21, 2025 Option Breakdown

Contract Snapshot

• Strike Price: $40
• Expiration: November 21, 2025
• Bid / Ask Spread: $5.40 / $5.50
• Last Trade: $5.45
• Open Interest: 1,412
• Intrinsic Value: 1.20
• Probability ITM: 50%
• Probability OTM: 49%

Trader Insights

1. Entry
   
   • Wait for SMCI to dip closer to $40.
   • Place a limit order at $5.40 (never chase).
3. Stop Order Strategy
   
   • Set stop-loss around $4.70. That’s roughly a 14% max risk per contract.
   • If SMCI stock closes below $39, reevaluate. Don’t hold and hope.
5. Take-Profit Strategy
   
   • First target: $7.50 (about 38% gain).
   • Scale out partial position at $7.50–$8.00.
   • Keep runners if SMCI shows momentum; next target $10.00+.

Position Size Scenarios

1 Contract

• Cost: ~$545
• Stop-Loss Risk: -$75 (if stopped at $4.70)
• Profit at $7.50 exit: +$205
• Profit at $10 exit: +$455

5 Contracts

• Cost: ~$2,725
• Stop-Loss Risk: -$375
• Profit at $7.50 exit: +$1,025
• Profit at $10 exit: +$2,275

10 Contracts

• Cost: ~$5,450
• Stop-Loss Risk: -$750
• Profit at $7.50 exit: +$2,050
• Profit at $10 exit: +$4,550

Playbook

Mindset: Buy red days, sell green days. The money is made in execution, not prediction.

Order Type: Limit only.

Target Entry: $5.40.

Stop: $4.70 (cut losers quick).

First Exit: $7.50 (lock partial gains).

Second Exit: $10.00 (let profits run).