Chip Maker Upgrade Gets Hot Option Activity
"Fast Money" Contributor
Option activity is starting to heat up in Marvell Technology, as the chip maker rests at its 52-week lows.
Lazard Capital Markets upgraded the company from "neutral" to "buy," saying its contract with China Mobile may provide better revenue than most analysts expect. Marvell could also benefit from the data-storage market.
There is no doubt that competition is building, but the stock price has been driven to levels that may well be oversold.
OptionMonster's real-time tracking systems showed bulls coming back to the name throughout yesterday afternoon, with the most aggressive activity focused on the January 14 calls. More than 10,000 of those traded, with most of the large blocks pricing for $1.40.
Overall call volume in the name was almost 6 times put volume, according to our scanners. MRVL rose 1.96 percent to close at $13.47 yesterday (Monday). See ticker above for today's quotes.
Pete Najarian has no positions in MRVL.
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