Marvell Technology (MRVL, news, chart, volatility) is seeing bullish order flow early Tuesday. The stock is up 76 cents to $7.46 after the company preannounced third quarter results yesterday after the closing bell. The company expects a 6 to 7 percent decline in sequential revenues citing “the slowing of the worldwide economy” and “a great deal of uncertainty in the current demand environment”. Jeffries analysts say drop off in September/October ordering is consistent with peers and not a surprise. Friedman Billings says echoes the comments, saying, it’s not surprising the company guided third quarter lower given many chip companies have noted a slowdown in the late September and October.

Investors seem relieved that the news wasn’t worse and MRVL is up 11.3 percent. 12,000 MRVL calls have traded, compared to only 330 puts. The January 10 and May 7.5 calls are the most actives, with more than 9,000 traded and almost all traded offerside. Consequently, directional sentiment based on the early options order flow in MRVL is 92 percent bullish.