RJ Hamster
1 Stock For Monday, March 23rd
A message from our friends at Stocks to Trade (sponsor)
Want to start next week off with a big win?
Our new algorithm may have just uncovered a new dirt-cheap stock with a great chance of moving +100% or more this Monday.
…One ticker…
…One trade…
…One MONSTER move…
All you have to do is make this one trade on Monday.
While I can’t promise future performance, previous picks from this new Monday Algo have racked up gains of +149%, +190%, and +536%… in as little as one day.
And we think this new pick could be just as big.
But if we’re right, it may move FAST…
–Tim Sykes
BONUS ARTICLE
Super Micro Just Lost the Market’s Trust — Here’s the Options Setup Now
Markets do not need a full collapse in fundamentals to crush a stock.
They only need a reason to stop trusting the story.
That is what happened to Super Micro Computer on Friday.
The market was not hit with a weak quarter. It was not hit with a demand warning. It was not hit with a surprise guidance cut. Instead, it was hit with something far more toxic for a premium AI infrastructure name: legal and geopolitical headline risk tied directly to export controls, China exposure, and Nvidia-powered server demand. Federal prosecutors in the Southern District of New York unsealed an indictment charging Super Micro co-founder and senior vice president Yih-Shyan “Wally” Liaw, Taiwan general manager Ruei-Tsang “Steven” Chang, and third-party broker Ting-Wei “Willy” Sun with conspiring to divert high-performance U.S. AI servers to China in violation of export-control laws. Prosecutors said the alleged scheme involved billions of dollars’ worth of servers, with Liaw and Sun arrested and Chang still a fugitive.
That matters because this is not a random side issue for Super Micro.
This is not about one bad headline. It is about the one thing AI hardware names cannot afford right now: any suggestion that their explosive growth machine could run into legal, compliance, licensing, customer-screening, or national-security friction. Prosecutors said the servers were assembled in the United States, routed through Taiwan and Southeast Asia, and ultimately diverted to customers in China despite U.S. restrictions on advanced AI hardware exports. Super Micro itself was not named as a defendant, but Reuters reported the company put the implicated employees on leave, severed ties with the contractor, and said it is cooperating with authorities.
And the timing could hardly be worse.
Super Micro had already become one of the most volatile names in the AI infrastructure trade. It is a company that can still post staggering top-line growth, but it does so while carrying thinner margins than the market typically tolerates from a stock with a hot narrative. In its latest reported quarter, Super Micro posted fiscal Q2 2026 net sales of $12.7 billion, up from $5.7 billion a year earlier, while net income rose to $401 million from $321 million. But the same report also showed how fragile the earnings architecture can be: gross margin fell to 6.3%, down from 11.8% a year earlier. Management said it expects at least $40 billion in fiscal 2026 net sales.
That combination is why Friday’s selloff hit so hard.
When a company is growing that fast, investors are willing to forgive a lot. They will forgive execution noise. They will forgive supply-chain weirdness. They will even forgive margin compression for a while if they believe the revenue opportunity is enormous enough. What they do not forgive easily is the idea that revenue growth could be entangled with export-control violations tied to the most politically sensitive technology market on Earth.
That is why this move was not just a standard “bad news gap.”
It was a multiple compression event.
At around $17.47 billion in market value based on Friday’s finance snapshot, Super Micro is now being judged much less like a clean AI picks-and-shovels growth winner and much more like a company whose future cash flows deserve a steep legal and compliance discount.
What the Market Is Really Repricing
The market is not trading what Super Micro sold last quarter.
It is trading what could happen next.
Could regulators widen the lens? Could major customers scrutinize internal controls more aggressively? Could export-compliance oversight become more expensive and more restrictive? Could the market now assume that future China-adjacent server demand deserves less credit in valuation models? Even if none of those outcomes materially damage revenue, traders now have to price the possibility that they might.
That is the key distinction.
A criminal indictment tied to export controls is not the same as a cyclical slowdown. A cyclical slowdown can reverse with the next product cycle or capex wave. A trust shock tied to national-security technology transfers can linger because it changes how investors frame every future data point. A strong quarter becomes “good, but can the company keep it?” A big design win becomes “good, but how clean is the customer mix?” A rebound becomes “good, but what multiple should a headline-risk name really command?”
That is a very different tape.
Why Nvidia Matters So Much Here
This story is inseparable from Nvidia.
The indictment centers on high-performance servers integrating advanced U.S. AI technology, the exact category that has become central to hyperscaler buildouts, sovereign AI spending, enterprise training clusters, and the broader AI datacenter arms race. Reuters reported prosecutors described at least $2.5 billion in U.S. AI technology as part of the alleged smuggling scheme, with over $500 millionallegedly shipped in just a short stretch between April and mid-May 2025.
That figure is large enough to matter not just as a criminal allegation, but as a signal.
It tells the market that export-control enforcement around AI hardware is not theoretical. It is active. It is prosecutable. And it can reach directly into one of the highest-beta AI infrastructure names on the board.
For traders, that means SMCI is no longer just a read-through on AI server demand.
It is now also a read-through on regulatory enforcement risk inside the AI supply chain.
The Fundamental Bull Case Did Not Vanish — But It Did Get More Complicated
This is where the trade becomes difficult.
Because if you strip away the legal shock, the underlying company is not trivial. Super Micro just reported a quarter with 123% year-over-year sales growth, and management is still pointing to at least $40 billion in fiscal 2026 revenue. On raw sales velocity alone, that remains extraordinary.
But the problem is that sales growth alone does not support the stock when the market begins questioning the quality, durability, or compliance profile of that growth.
And that takes us straight to the options lens.
The Options Market Setup: This Is No Longer a “Simple Dip Buy” Chart
When a stock gaps down more than 20% on a criminal-indictment headline tied to national security and China, options traders should assume several things immediately, even before looking at a chain:
First, implied volatility almost certainly reprices sharply higher. Not because the market suddenly knows the answer, but because the range of possible outcomes has widened. The stock is no longer trading on quarterly math alone. It is trading on legal developments, company statements, customer reaction, analyst downgrades, and the possibility of follow-on investigations.
Second, skew usually shifts toward downside protection. In events like this, puts often get bid faster than calls because institutions and fast-money traders alike care less about catching the exact bottom than about hedging another leg lower.
Third, front-week options can become deceptively dangerous. Traders see the stock down huge and assume the easy money is buying calls for a dead-cat bounce. But when implied volatility explodes, you can be directionally right and still lose if the bounce is too small or too slow relative to the premium you paid.
That is why this setup demands structure, not heroics.
Three Trade Frameworks to Think About
1. The Bear Continuation Template
If you believe this headline triggers a deeper de-risking cycle, the cleanest approach is not naked long puts after a collapse. It is usually a defined-risk put spread.
Why?
Because after a gap this violent, straight puts can carry punishing volatility premium. A put spread lets you express the view that the stock can continue lower while acknowledging that part of the move may already be priced. This is the right template for traders who think the market is still early in recalibrating valuation, especially if analysts begin cutting price targets or if fresh legal details emerge.
The risk here is obvious: headline-driven selloffs can produce vicious reflex rallies.
2. The Reflex Rebound Template
If you believe Friday’s move is an overshoot rather than the start of a new lower regime, the better structure is usually not naked calls either. It is a call spread or even a put-credit structureonly if you are comfortable with event risk and elevated volatility.
The thesis would be simple: the company itself is not charged, revenue demand remains real, AI infrastructure spending is still enormous, and the stock may snap back once forced selling exhausts itself.
But that trade only works if the market decides this is a contained governance problem rather than a narrative-breaking event.
That is a big “if.”
3. The Neutral / Volatility-Compression Template
For traders who think the first move may be too large but do not want to pick direction, the cleanest framework is to wait for volatility normalization and only then decide whether premium-selling structures make sense. On day one of a shock like this, patience is a position. The stock can easily swing in both directions while options remain expensive enough to punish impatience.
Sometimes the best options trade is not the first one.
The Key Levels That Matter Now
After a collapse like this, chart levels become less about perfect technical purity and more about narrative checkpoints.
The first level that matters is the gap zone. If SMCI cannot reclaim even part of the breakdown area over the next several sessions, that tells you institutions are not treating this as a one-day panic. They are using strength to reduce exposure.
The second level is the post-gap low. If the stock keeps probing fresh lows after such a violent flush, it suggests that the market does not yet believe the downside has been fully priced.
The third level is psychological rather than technical: whether traders are willing to re-underwrite SMCI as a premier AI infrastructure name at all, or whether they now insist on a permanent discount.
That last one is the most important.
Risk Analysis: What Could Break Either Way
The bull risk to shorts is that the market has already priced in too much damage. Remember, Super Micro is still a company tied to one of the strongest secular themes in the market. If management moves quickly, cooperates fully, strengthens compliance messaging, and the story stabilizes, a sharp rebound would not be surprising.
The bear risk to dip buyers is that this is only the first headline in a longer process. Legal stories do not resolve on the market’s preferred schedule. They unfold in documents, hearings, analyst notes, customer diligence, and second-order questions. That can keep a lid on the stock even if the business itself remains operationally strong.
Bottom Line
This is not a standard AI pullback.
This is not about whether server demand is real.
This is about whether investors are willing to pay a growth multiple for a company that just became entangled in one of the most sensitive fault lines in global technology: advanced AI hardware, China, and U.S. export enforcement. Federal prosecutors allege a scheme involving billions of dollars of servers, two arrests have already occurred, and the company has placed employees on leave while cooperating with the investigation. Meanwhile, the underlying business still has scale, still has hypergrowth, and still expects at least $40 billion in fiscal 2026 sales.
That combination is exactly why SMCI is now an options trader’s stock.
There is enough damage here to justify fear.
There is enough growth here to justify violent countertrend rallies.
And there is enough uncertainty here to punish anyone trading it without a plan.
Tactical Checklist
For traders expecting more downside, a defined-risk bearish spread makes more sense than chasing inflated naked puts.
For traders expecting stabilization, a limited-upside rebound structure is more disciplined than paying for open-ended call premium into a volatility spike.
For traders who do not yet trust the tape, the smartest position may be waiting to see whether the stock can reclaim part of the breakdown zone before committing capital.
Because the market is not asking whether Super Micro can still sell servers.
It is asking whether the story deserves trust.
And until that question gets a better answer, options traders should assume the volatility is real.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investing involves risk, including the potential loss of principal. Always do your own research before making investment decisions.
IMPORTANT NOTICE AND DISCLAIMER
Investing Media Solutions, LLC (“IMS”), the owner of this website (the “Website”), cannot guarantee the accuracy or completeness of the information contained in any article, email, newsletter, or other publication posted on or viewed in connection with this website (the “Publications”). The author or authors of those Publications are solely responsible for their contents. IMS has not done any research or due diligence into the markets, industries, or companies which may appear or be mentioned in the Publications. IMS will NOT be liable for any loss or damage caused by a reader’s reliance on information posted on the Website or contained in the Publications.
FOR EDUCATIONAL AND INFORMATIONAL PURPOSES ONLY; NOT INVESTMENT ADVICE.
This Website and the Publications are for educational and informational purposes only. This Website and the Publications do not purport to be a complete analysis of any company’s financial position. This Website, the Publications or any statements made in the Publications are not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular individual. This Website or the statements made in the Publications should NOT be relied upon for purposes of transacting in any securities posted on the Website or mentioned in the Publications, nor should they be construed as a personalized recommendation to you to buy, sell, or hold any position in any security posted on this Website or mentioned in any Publications.
SUBSTANTIAL RISK IN INVESTMENT.
Any individual who chooses to invest in any securities including those mentioned in the Publications should do so with caution. Investing or transacting in securities involves substantial risk; you may lose some, all, or possibly more than your original investment. Readers bear responsibility for their own investment research and decisions and should review all investment decisions with a licensed or registered investment professional.
NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER
Neither IMS nor any of its respective owners or employees are registered or licensed as a securities broker-dealer, broker, an investment advisor, or an investment advisor representative with the U.S. Securities and Exchange Commission (SEC), any state securities regulatory authority, or any self-regulatory organization.
To more fully understand our Website, please review our full disclaimer located at: https://thecheapinvestor.com/disclaimer/
At The Cheap Investor, it’s our mission to create and provide a community that helps you invest and understand stocks. When TheCheapInvestor was established, we wanted to make the community an inclusive place where investors can come to get ahead! Not just help them with daily stock picks. The Cheap Investor are provided to you for information only and should not be considered as a stock or investment advisor. The Cheap Investor may make available certain information related to trading strategies and stock prices for educational and information purposes only; any information made available should not be construed as an endorsement, recommendation, or sponsorship of any company or security. By visiting this site or using the training materials, you acknowledge and agree that any reliance upon the content or data available through The Cheap Investor is at your own sole risk. You are strongly advised to use your own judgment, research, and consult a professional advisor.
Over the years, and with thousands of followers that use our stock picks daily, we promise to always aim to get better at what we do every single day! In addition, our primary focus is on our communication with you. It’s really important to us that every time you come to us, you end up leaving with the help you came for to take your investment portfolio to new levels.
We particularly appreciate when our following provides feedback via testimonials, reviews, and comments left on our site or social media accounts. Because with that feedback, we can use it to make your next visit to our site even better than the last!
Since we put so much effort into the relationship with you, we hope that any investment in us is exactly the way you hoped it would be. Because by choosing to go with https://TheCheapInvestor.com/, it’s our promise that we provide a community you will come back to over and over again.
Now, as much as we care about making investors more successful, we also care about your privacy. TheCheapInvestor is owned and operated by TheCheapInvestor website.
We’re committed to the right to your privacy and strive to provide a safe and secure user experience. Our Privacy Policy explains how we collect, store and use personal information, provided by you on our website.
What Information Do We Collect?
When you visit our Web site you may provide us with two types of information: personal information you knowingly choose to disclose that is collected on an individual basis and Web site use information collected on an aggregate basis as you and others browse our Web site.
For example, you may need to provide the following information: • Name • Website URL information • Email address • Home and business phone number
In addition to providing the foregoing information, if you choose to correspond further with us through email, we may retain the content of your email messages together with your email address and our responses. We provide the same protections for these electronic communications that we employ in the maintenance of information received by mail and telephone. It also explains important information that ensures we won’t abuse the information that you provide to us in good faith. By accessing and using our website, you can trust that what you want to be kept private, will be kept private. If at any time, you would like to read our Privacy Policy and get a better understanding of your rights and liabilities under the law.
Feel free to visit our site, find the privacy policy in the footer and read it. If there is something you are concerned about or wish to get more clarity on, please let us know by contacting us at support@thecheapinvestor.com. The Privacy Policy also informs you of how to notify us to stop using your personal information. If you wish to view our official policies, please visit our website https://TheCheapInvestor.com/
At The Cheap Investor, we are strongly committed to protecting your privacy and providing a safe & high-quality online experience for all of our visitors. We understand that you care about how the information you provide to us is used and shared. We have developed a Privacy Policy to inform you of our policies regarding the collection, use, and disclosure of information we receive from users of our website. The Cheap Investor operates the Website.
Our Privacy Policy, along with our Term & Conditions, governs your use of this site. By using https://TheCheapInvestor/, or by accepting the Terms of Use (via opt-in, checkbox, pop-up, or clicking an email link confirming the same), you agree to be bound by our Terms & Conditions and our Privacy Policy. If you have provided personal, billing, or other voluntarily provided information, you may access, review, and make changes to it via instructions found on the Website or by emailing us at support@thecheapinvestor.com. To manage your receipt of marketing and non-transactional communications, you may unsubscribe by clicking the “unsubscribe” link located on the bottom of any marketing email. Emails related to the purchase or delivery of orders are provided automatically – Customers are not able to opt out of transactional emails. We will try to accommodate any requests related to the management of Personal Information in a timely manner. However, it is not always possible to completely remove or modify information in our databases (for example, if we have a legal obligation to keep it for certain timeframes, for example). If you have any questions, simply reply to this email or visit our website to view our official policies.
Update your email preferences or unsubscribe here
© 2026 The Cheap Investor
203 N La Salle Suite 2100
Chicago , Illinois 60601, United StatesPowered by beehiivTerms of Service