Investor buys time for rally in Marvell
The bulls are targeting Marvell Technology.
optionMONSTER's Heat Seeker system detected the sale of 13,773 May 10 calls for $0.66 and the purchase of 13,000 August 10 calls for $0.94 yesterday. Volume was below open interest in the nearer-term contracts, showing that a long position was rolled forward by three months.
Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Coaching section)
MRVL fell 0.11 percent to $9.26 yesterday but is up 13 percent in the last week. The chip maker's next quarterly results are estimated to come out after the close on Feb. 18.
Overall option volume in the name was 4 times greater than average yesterday, according to the Heat Seeker. Calls outnumbered puts by a bullish 18-to-1 ratio.
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