Marvell Tech: What Options are Saying
Bulls have been running the show at Marvell Technology for more than a year, and now the bears want a turn.
OptionMonster's real-time tracking systemsdetected the purchase of 5,000 February 17.50 puts for $0.65 yesterday against open interest of 1,383 contracts. The trade occurred as the shares drifted lower after spiking to a 29-month high Wednesday.
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Marvell fell 1.48 percent to $19.25 yesterday but has more than tripled from its November 2008 low. The company, which has enjoyed strong demand for networking and wireless chips, issued better-than-expected guidance the last three times it reported results. Its last earnings release was Dec. 3.
The put buyer may be a shareholder looking to hedge their position after Marvell traded at its highest level since July 2007. The stock needs to fall at least 12.5 percent by expiration for the options to turn a profit.
Overall options activity is in the stock is bearish today, with puts outnumbering calls by more than 2 to 1.
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David Russell is a reporter and writer for OptionMonster.