This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

How the Bulls Are Playing Marvell: OptionMonster

Semiconductors have been coming to life, yesterday traders turned bullish on Marvell Technology (MRVL - Get Report).

OptionMonster's scanning systems detected the purchase of some 20,000 February 14 calls in volume far above the strike's previous open interest of just 1,965 contracts, clearly showing that new positions were established. The initial blocks priced for $0.64, though premiums at one point traded as high as $1.01.

These calls lock in the price where a stock can be purchased, allowing investors to benefit from a rally without the cost and risk of owning shares. They can also generate significant leverage if there is a decent move in the right direction.

Marvell shares rose 2.53 percent to $13.76 yesterday and are up 90 percent so far this year amid strong quarterly results. The stock pulled back in the last month but is now bouncing above its 50-day moving average, which could make some chart watchers expect the uptrend to continue.

Overall option volume was 2 times greater than average in the name, with calls accounting for a bullish 79 percent of the total.

--By David Russell, who has no positions in MRVL.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
MRVL $16.10 0.63%
TSLA $199.84 0.14%
AAPL $128.79 -0.44%
FB $80.17 0.72%
GOOG $574.59 0.17%


DOW 18,065.99 -137.38 -0.75%
S&P 500 2,096.67 -11.11 -0.53%
NASDAQ 4,963.7220 -16.1790 -0.32%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters