Marvell Technology is pulling back from its highest price in
almost four years, and the bears are positioning for a selloff.
optionMONSTER's Depth Charge tracking system detected the purchase
of more than 35,000 May 21 puts yesterday, most of which priced for
$0.55 to $0.70. Volume was more than seven times previous open
interest in the strike.
MRVL rose 0.23 percent to $21.81 yesterday. The semiconductor stock
has been edging lower since reaching $22.87 last week, its highest
price since a bearish gap in June 2006. Some chart watchers may
expect the shares to encounter resistance at this level.
The company reported better-than-expected sales and profit on March
4, though management spoke cautiously about the strength of the
MRVL must fall at least 7 percent by expiration for the puts bought
Thursday to turn a profit.
Overall options volume in the stock was eight times greater than
average, with puts accounting for 91 percent of the activity.
(Chart courtesy of tradeMONSTER)
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