Super Micro Plunges 33% After $2.5B AI Chip Smuggling Charges, Options Crash
Super Micro shares plunged 33% to close at $20.53 after a co-founder and others were charged in a $2.5 billion AI chip smuggling case. The collapse wiped out call open interest at $31 and $33 strikes and sent near-term calls down up to 94%, while puts rallied over 5 000%.
1. Smuggling Charges Trigger 33% Plunge
Shares of Super Micro tumbled 33% to close at $20.53 after a co-founder and other individuals were charged in a $2.5 billion AI chip smuggling case, marking the steepest one-day decline in company history. The legal action raised concerns about internal controls and potential disruptions to global shipments.
2. Call Options Wiped Out by Sudden Selloff
Bullish traders holding call options at $31 and $33 strikes—which collectively accounted for more than 20,000 contracts—saw nearly all of their value evaporate as the stock closed well below those levels. Near-term calls at $22, $23 and $24 strikes lost between 89% and 94% of their value, exposing a widespread lack of downside protection.
3. Put Options Surge as Traders React
Put option volume and prices soared, with some contracts gaining over 5,000% in a single session. Data indicates most of this positioning was established after the charges were announced, highlighting reactive hedging behavior and underscoring the speed at which sentiment can shift in high-growth tech stocks.