Marvell Technology has more than doubled from its November low, and on Wednesday options traders are betting that the chip maker has even more room to rise.
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OptionMonster's tracking systems detected new money flowing into the May 11 and May 12.50 calls today. Some 4,774 contracts traded in the May 11 calls, representing four times open interest. The May 12.50 calls traded almost 5,400 contracts against open interest of 3,471.
Most of the lots contained fewer than 200 contracts and were executed above theoretical value, which reflects purchasing by individual "retail" traders, not institutional investors. MRVL shares must rise to the $11.70-$13 range by expiration for the trades to profit. The stock is down slightly on the session to $10.24 in midday trading.
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David Russell is a reporter and writer for OptionMonster.