MRVL – Marvell Technology Group Ltd. – Options traders are augmenting bearish stances on the provider of semiconductors today with shares of the underlying stock down 2.50% to $15.89 just before 12:00 pm (ET). Selling in- and out-of-the-money call options on Marvell Technology Group has been a popular pastime for some pessimistic players recently and today is no exception. Investors sold at least 2,700 calls at the August $17 strike for a premium of $0.66 apiece, and shed 2,100 calls at the lower August $16 strike for an average premium of $1.13 each. Call sellers at these strikes keep the premium received on the transaction as long as shares fail to rebound above the strike prices described through August expiration. Options traders expecting Marvell’s shares to continue to decline sold at least 3,300 in-the-money calls at the August $15 strike to pocket an average premium of $1.74 each. In-the-money call sellers walk away with the full premium received if shares of the semiconductor company decline another 5.6% to trade beneath $15.00 through expiration day in August.
Affiliation: Interactive Brokers
Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.
Interactive Brokers: Interactive Brokers offers direct market access to around 80 electronic global markets from a single account. Successful traders and investors understand that superior technology and lower trading costs can result in greater returns. For 32 years we have been building direct access trading technology that delivers real advantages to professionals worldwide. With consolidated equity capital of US $4.4 billion, IB and its affiliates exceed 1,000,000 trades per day. In addition, our prudent and conservative risk policies make Interactive Brokers a safe haven for your money. Discover some of the reasons why IB, the largest independent US broker/dealer, is the professional traders' and investors' choice.
Visit: Interactive Brokers