How one large bull is playing Marvell


One investor expects a springtime rally for Marvell Technology, which is off to a strong start in 2013.

optionMONSTER's Heat Seeker monitoring system detected the purchase of 10,000 March 10 calls for $0.23 and the sale of 5,000 March 8 puts for $0.23. Volume was more than 40 times the previous open interest at each strike, clearly indicating new activity.

The trade cost $115,000 and is similar to owning shares in the semiconductor company. If it climbs, the long calls will appreciate and the short puts will lose value, while the opposite will happen to the downside.

The investor is also obligated to buy MRVL shares for $8 if they close below that level on expiration. (See our Education section for more on what it means to sell puts .)

MRVL is down 1.46 percent to $8.76 in morning trading. The stock fell steadily in 2011 and 2012 but then found support around $7 in December and is up 22 percent since the start of this year.

Total option volume is triple the daily average so far today, according to the Heat Seeker.

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