SMCI is a two-sided call: one guest, bearish for months, now buys a November 35-40 call spread into the earnings report, expecting the $40s within a month; the other is skeptical on erratic price action, broken moving averages and downside to the $24-25 value area.

You have chosen Super Micro Computer, ticker SMCI, as your choice. It's been quite a climb today , we're up over 3.5 percent , but it's a very interesting chart. I mean, we're way below where we were in 2024.

I think we were above $110, $115. Even looking at the end of last year, we are down from there.

So, what are you seeing in Super Micro that you like , or is this a bearish move? And you can tell by looking at the chart where we are now compared to the end of last week or 2 weeks ago.

I have been bearish on this stock for months. I had a great opportunity to cash out when the stock crashed on Friday. Now to me, looking at the charts, it looks like this is a decisive time.

And I'm ready to take a position now because it's time to do something. Their earnings report will be released in a few weeks. I am willing to hold this position until the earnings report comes out.

I would buy a simple call spread just for an upward trend. You know, it's completely risk- based. I'm thinking of buying a November 35-40 call spread , which will cost around $1.15 to $1.20.

Again , this is truly a defining moment for me. And I think that in the next month or so we will see it at least come back into the 40s.

Okay, KG. So, do you also see the possibility of a technical upside in the next month or so? We have their income report for November 3rd. Scott was doing very well with the other two charts.

But I'm a little skeptical about this. If you look at the 1- year daily chart, you will see that its price has fluctuated quite a bit. The price behavior here is very erratic. It tries to hold a trend , but cannot hold it for long.

Usually you will see a reversal trend within 2 to 3 weeks. And this is why I am somewhat negative about this stock. If you look at the last 3-4 months, i.e. since July, some buyers have been seen entering the market.

We were able to create a kind of ascending wedge , if you look at it that way. But we have broken through the bottom of that wedge. We have broken below the 20- day moving average , broken the 50- day moving average and are now testing the 200- day moving average.

Is this a life-or- death struggle? Yes, that's right. And Scott is right. You must maintain the 200-day moving average. Unfortunately, there is still a gap zone below that has been attractive to many buyers over the past year.

The MACD is still below the zero line and is below the 12 EMA and 26 EMA. The RSI is showing some bounce , but that is due to today's 4% increase. You need to see more consistency here.

The daily chart looks very messy and there is probably more opportunity in the market, but I understand that Scott is trying to look at the risk-reward balance here and the 200- day moving average seems somewhat logical.

Let's move on to the weekly chart, and this is where you become more pessimistic about this stock. It hasn't really done anything special in the last one and a half to two years.

It is trading in the range of $20 to $60. And yes, this is a pretty big range compared to the price of this share. But it was originally trading around this 200- week moving average , and currently it is trading below that 200-week moving average, and even below the 50-week and 20-week moving averages.

Unfortunately, although the MACD is above the zero line , the 12 EMA has dropped below 26 and it looks like it could drop a bit further. The RSI, lower highs, and higher lows also broke last week.

It looks like it is only trading within a certain range. It is in the middle of the range and weekly momentum says we could go a little lower here, and the value area is basically around $24 to $25.

Typically, buyers try to enter at that level , so look at it that way. This seems a bit bearish to me.

And that's great, everything Kevin said is correct, but one thing he said caught my eye, and that was the risk- reward ratio. So I think one of the reasons why this upside call spread is offering such a great risk-reward opportunity may be that some of the technical aspects are not looking very good.

I think this is an important juncture now. It could definitely go back to the $24 gap area , but that's also why Heinz has 57 varieties, that's how the market is made, and I respect everything KG says.