Marvell Technology (MRVL) added nearly 4 percent and traded 8,400 calls and 2,700 puts Tuesday ahead of 12/3 earnings. The options action was a mix late in the day of the same strategy emulated a few times in large size amounting for around 2,000 X 4,000 December 16/17 ratio call spreads, the $16’s being bought and the $17’s being sold in a slightly bullish in price, and bearish the 47% implied volatility strategy. Maximum profits are realized on expiration on a move to $17, or 6% higher from here and at a previous double top resistance. Shares are fairly valued at 16.2X earnings, but profitability ratios are worrisome.


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4 users commented on " Marvell Technology (MRVL) $16.17 +.87% "
Follow-up comment rss or Leave a TrackbackWhen are u adding me on twitter Joe?
RJ
Nice, My $SML calls blowin up.
you twitter rainman? @fredruffy. let’s tweet!
On MRVL, I didn’t see the risk-reversal yesterday. it traded mostly in smaller lots. Interesting trade ahead of earnings.
thanks Joe!
For more intra-day analysis from Joe Kunkle visit his web site:
http://optionshawk.com/
Yeah, I’m hiding Fred as one of your followers Fred…my t’nick is @rayjman. I saw your note on CME calls (actually I saw the news on exchange volume as well).
….Buying the selloff though (BAC & others), just cost avg’in in. Too bad I got the wrong month on that one $EXQ call I had, but still holding NDAQ calls……btw.
So…….started some OTM CS calls this morning (back month).
Oh wait, CS handles derivatives too?