Shares of server maker Super Micro Computer (SMCI) plummeted -22% in two days, 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.

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How could you use AI stock alerts to find this bearish signal?

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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. 

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This can be seen in the scenario's table view, which shows the average price reaction over the following weeks and months.

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

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The best way is by buying stock option puts on the stock. Some of these puts increased 1,000% in value in just a day as shown below. It's also possible to short the stock, which involves borrowing shares and then replacing them at a lower cost via a margin account.

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