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SMCI: A Powerful Stock That Plays Mind Games


Super Micro (SMCI) is one of the trickiest names in the market.

It's been one of my best names as of late as I played it with options on the Alpha Team VTF®, offsetting tougher names like IBIT, which has struggled.

And I do think SMCI has potential to head back to the $972 area, and eventually, back to the record highs over $1,200.

But I exited my remaining SMCI options this morning at 11:13 am.

Here's why: SMCI takes a ton of emotional bandwidth to trade.

It's almost like a meme stock with all the wild intraday swings out of nowhere, and you can't let it out of your sight.

And I don't want my trading performance to suffer because I'm overfocusing on SMCI all the time.

Nvidia (NVDA), by comparison, is relatively tame — but still gives us wide price swings to potentially ride.

Remember, you don't have to be in everything to do well.

Also, I'm keeping my eyes out on a potential rebalancing trade towards energy, which hasn't participated in the recent rally.

As you can see in my disclosures below, I've been long Warren Buffett favorite Occidental Petroleum (OXY) and XLE $88 calls for next Friday.

I trimmed both of those positions today, but I'll be looking for opportunities to add back.

I'm not saying it's time to go all in on energy — but it must be on the radar now.

SMH is up 59% this year and XLE is up just 6%.

So catch-up may be in order.

Scott's Positions Disclosure as of 2024-06-18 at 1.31.12 PM

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