Credit: Shutterstock photoMarvell Technology is down along with most other stocks, but one bull isn't giving up.
optionMONSTER's Heat Seeker tracking system detected the purchase of 5,000 September 15 calls for $0.35 and the sale of an equal number of August 15 calls for $0.19. Volume was below open interest in the August contracts, indicating that a long position was rolled from one month to the next.
The trade cost $0.16 and gives the investor more time for the semiconductor stock to rally. Doing it now makes sense because the August calls will lose value at an accelerating pace as expiration approaches next Friday, which in turn would increase the net cost of rolling the position.
MRVL is up 2.76 percent to $12.27 in morning trading but has been trending lower all year amid weak PC sales. Management forecast better demand from Chinese smart phones on May 26, causing the shares to gap higher, but those gains were soon erased and the stock continued to slide.
The company's next earnings report is scheduled for after the bell on Aug. 18.
Overall option volume in MRVL is almost twice the average amount so far today.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
