Shares of server maker Super Micro Computer (SMCI) are now down -30%, following a short seller attack that took down many others before them. LevelFields' AI alert went out a few minutes after the scalding rebuke of SMCI's accounting practices rocked the stock. SMCI is down 68% from its all-time-high.

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JP Morgan Downgrades SMCI stock

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The Short Seller Scenario identifies these types of downside risks. On average, these reports have caused a -17% drop in the stock in the first day or two, following by a slow, painful bleed over the latter months as lawsuits and government investigations pile up. This is exactly what we're seeing with SMCI, and the downgrade is causing even more selling.

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How do you use AI to trade stocks using short seller events?

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The best way to trade bearish AI stock alerts is by buying stock option puts on the stock. Some of these puts increased 1,000% in value in just a day. It's also possible to short the stock, which involves borrowing shares and then replacing them at a lower cost via a margin account. Using the table view enables options traders to see how these events typically affect share prices, and to choose the best expiration dates and exit points.

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