Market News

October 12, 2012  Fri 11:07 AM CT

Shares of Marvell Technology are down to three-year lows, and one trader doesn't see much upside in the near term.

A trader sold 2,500 November 9 calls for the bid price of $0.38, according to optionMONSTER's tracking systems. The volume was above the open interest in the strike at the start of the day, indicating that this is a new position.

MRVL is down 2.16 percent to $8.69, on pace for its lowest close since March 2009. Shares are almost half of what they were at their 52-week high back in February and have slipped from above $12 in the last two months, including a downward gap after its earnings report in mid-August.

Today's call selling is a bet that the semiconductor stock won't see much upside beyond the $9 strike price. The options were likely sold against long shares in a covered call trade, which would be bullish up to $9 but give up any stock gains above that. (See our Education section)
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