Marvell decline draws long-term buyer
David Russell | firstname.lastname@example.org
optionMONSTER's Heat Seeker tracking system detected the purchase of 5,000 January 17.50 calls for $1.39. Equal-sized blocks were also sold in the January 12.50 puts for $1 and the January 22.50 calls for $0.32, resulting in a net cost of $0.07.
The investor now stands to earn more than 7,000 percent if the chip maker closes at or above $22.50 on expiration early next year. Aside from that initial $0.07 outlay, he or she can only lose money if it goes below $12.50.
MRVL declined 3.71 percent to $15.46 on Friday. Shares have been fighting their way higher in 2012 after hitting a two-year low last summer. They're down more than 7 percent in the last week, which could make some traders consider the current level an attractive entry point.
Overall option volume was 7 times greater than average in the session, according to the Heat Seeker.