Super Micro: How I Am Repairing My Losses Instead Of Panic Selling

Doug Collins101 FollowersFollow5ShareSavePlay(18min)CommentsSummarySuper Micro Computer faces severe legal and compliance risks after a DOJ indictment of key individuals, but they are not existential.In my opinion, SMCI's business model hinges on continued Nvidia allocation; a total cutoff is existential, but a partial reduction is more likely.Current holders should avoid panic selling or doubling down; a structured options strategy can systematically reduce cost basis and manage risk.New investors should stay away until legal clarity emerges, as unresolved risks justify the deep value discount despite strong revenue and earnings.iZhenya/iStock via Getty Images As of now, many of you know the story of what happened in the last couple of days with Super Micro Computer (SMCI), but let's do a short recap. On March 20th, Super Micro stock tanked This article was written byDoug Collins101 FollowersFollowI come from the world of SQL queries, data visualization. My professional background is in data analytics and social media marketing, which gave me a weird but useful lens for looking at markets. I usually think in datasets, trends and pattern recognition before I think in headlines. I started learning about the investing and financial market during COVID like a lot of people, but unlike most, I never left. What started as buying a few stocks during lockdown turned into a deep dive down the rabbit hole and studying market structure, learning options. Over time I went from a casual investor to actively swing trading stocks and regularly trading Nasdaq futures. I also actively trade options and Nasdaq (NQ) futures as a swing trader, which keeps me plugged into short-term market dynamics, and volatility. When I am not staring at charts or digging through earnings reports, you'll find me training jiu-jitsu at my local academy.Analyst’s Disclosure: I/we have a beneficial long position in the shares of SMCI, DELL, NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Disclosure: I am long SMCI and actively executing the options strategy described in this article. This is not investment advice. Options trading involves significant risk and is not suitable for all investors. If you are not comfortable with options or with the possibility of owning additional shares of SMCI, do not use this strategy. Do your own research. I am sharing my approach because I believe it provides actionable structure during a difficult situation, not because I think it is risk free.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.