To shorts: If you are short on MRVL, cover your shorts to cut the loss now if you are out of the money, or to head to the bank if you are in the money.
To longs: Hold your positions to enjoy the ride if you are in the money, or to minimum loss if you are out of the money. Dollar cost average and take a position on the stock when it is trending up.
Remember, trend is your friend, go with the flow. When the stock trends up, the longer you hold the stock, the more the gain (or the more the loss if you are shorting the stock).
When the stock is in down trend, the longer you hold the stock, the more the loss (or the more the gain if you are shorting the stock)
For shorts, not covering your position is like standing in front of the running train, You either pray, scream in panic, and hope the train will stop, or total “forget about the stock” on purpose to make you less worry – you do not care about the stock, the stock will not care about you either.
You eventually WILL have to cover your shorts in panic when the pain is too much for you to take (the stock keeps running up because of the computer programmed buy at the institutions when the price hits certain level as a BUY signal, by those who are smart enough to take a long position at the beginning of the beginning of the up trend, and by those who rush to cover their short positions).
Why? Greed and Fear. In this case - Fear. Theoretically, you could end up losing everything you have by not covering your short position. The higher the stock goes, the more damage you will suffer.
MRVL just made the list of "Stock Hit 20 Day High" on big volume (you know the big money is buying, and mutual funds purchase are not down all in ONE day, the purchases are usually executed in several days following the first BUY). MRVL has appeared on many people's radar screen today. These people, as well as mutual fund money manger's computers will jump in tomorrow to catch the leaving train tomorrow, leaving you, the shorts, to hold the sand bag.