OptionsHouse

Options Trading News

February 27, 2012  Mon 2:16 AM CT

MRVL: SEE CHART GET CHAIN FIND STRATEGIES
Marvell Technology pulled back last week, but one investor is bullish in the longer term.

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.
Share this article with your friends


Related Stories

MRVL

Notable option trades in equities

December 31, 2014

Nearing the halfway mark in today's session, here are the individual equity names with unusual option activity on optionMONSTER's ActionTracker data system.

Invest Like a Monster - Las Vegas: March 13-14

Premium Services

Free Webinar

Option Money Machine Winter Classic

Education & Strategy

The rolling technique

In the January 7th edition of Advantage Point, we initiated the purchase of a second week-out GOOGL 535 put at...

View more education articles »