SMCI Short-Term Put Position

SMCI is currently struggling to break past a key historical trend line around $62–$63, a level that acted as resistance multiple times over the past year. The stock briefly broke above $60, but failed to hold the breakout, signaling potential exhaustion. Price is approaching overbought territory with RSI nearing 70. This move is also extended from both the 50-day (blue) and 200-day (yellow) moving averages. Additionally, volume was not exceedingly high during the breakout. I have strong conviction that it will drop to ~50. SMCI spent nearly 9 months trading between ~$33 and ~$50, as shown in the purple consolidation box. If this breakout fails, $50 becomes a natural target, as its the resistance line in the consolidation box where SMCI has been trading at for 9 months. A close below $58 (today’s low) would confirm rejection and likely accelerate selling. A put position could be highly profitable.