SMCI Bull Put Credit Spread — 2026-11-20

SMCI (Super Micro Computer, Inc. - Common Stock) shows bullish unusual options activity: $264K of buyer-initiated unusual call flow (100% call-dominant) detected across near-term expirations, with a peak vol/OI ratio of 1.5x on the 31 call. We fade this by SELLING premium on the other side: the trade profits from time decay as long as SMCI stays above $27 through expiration. IV rank is 45 (moderate) — rather than sell naked premium at this IV, this is defined as a bull put credit spread (short $27 / long $26) so max loss is capped. Sell the $27 / buy the $26 put bull put credit spread expiring 2026-11-20 (14 DTE) for a net credit of $0.33 ($34 per spread). Breakeven at $26.66; net delta 0.08.

Underlying: SMCI @ ~$28.51 | 2026-11-20 (14 DTE) | Net credit (entry): ~$34 per spread. Use limit orders at the mid or slightly better.

ENTRY: Sell the $27 / buy the $26 put credit spread expiring 2026-11-20 (14 DTE) as ONE order at a LIMIT of the mid or better — target credit $34 on a $1 -wide spread. IV rank 45 is moderate — credit is workable but define risk and don't oversize. Don't leg in. Gamma: dealer gamma is roughly neutral — no pin edge either way; put wall (support) at $30; call wall (resistance) at $30. | TAKE PROFIT: Buy the spread back to LOCK IN gains at ~50% of the $34 max credit (close near $17 remaining). Also close on TIME: exit around 21 DTE regardless of P&L to sidestep the late-cycle gamma/pin risk near SMCI's short strike(s) — currently 14 DTE, so plan the exit 0 day(s) out. Defined risk — max loss $67, so let it run to ~50% rather than scalping tiny. | IF TESTED: If SMCI tests the $27 short put (delta ~0.30) or the loss reaches ~$67 (≈2× credit), roll the WHOLE spread DOWN and OUT ~7–14 days for a net credit — the lone-vertical play is roll-down-and-out or close (there's no untested side to roll in until you add a call spread). Treat a close below the $30 put wall as the hard trigger to act (the pin support has failed). If price knifes past the $26 long put, the spread is at/near max loss ($67) — take it rather than hoping. Breakeven $26.66. | MAXIMIZE: Winning cleanly above $27? Let theta close it toward 50%. To improve it, roll the spread UP toward the money in the next cycle for a fatter credit once most of this credit is banked, or add a bear call spread above the market to convert into an iron condor and double the premium if the flow turns two-sided.