Marvell Technology pulled back last week, but one investor is
bullish in the longer term.
optionMONSTER's Heat Seeker tracking system detected the purchase
of 5,000 January 17.50 calls for $1.39. Equal-sized blocks were
also sold in the January 12.50 puts for $1 and the January 22.50
calls for $0.32, resulting in a net cost of $0.07.
The investor now stands to earn more than 7,000 percent if the chip
maker closes at or above $22.50 on expiration early next year.
Aside from that initial $0.07 outlay, he or she can only lose money
if it goes below $12.50.
MRVL declined 3.71 percent to $15.46 on Friday. Shares have been
fighting their way higher in 2012 after hitting a two-year low last
summer. They're down more than 7 percent in the last week, which
could make some traders consider the current level an attractive
Overall option volume was 7 times greater than average in the
session, according to the Heat Seeker.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
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