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Bulls like Marvell before earnings

Somebody's looking for a strong number when Marvell Technology reports earnings later today.

optionMONSTER's Heat Seeker monitoring program detected the purchase of more than 6,000 November 15 calls for $0.35 this morning. Volume surpassed previous open interest of 4,563 contracts, which indicates new money was put to work.

These long calls lock in the price where shares can be bought in the semiconductor company. Investors use the options to get cheap upside exposure, ensuring that they won't miss a big rally while limiting risk. The contracts can generate significant leverage if shares move in the right direction but can also quickly lose value on a pullback. (See our Education section)

MRVL is up 0.3 percent to $13.58 in morning trading but is down 12 percent in the last three months. The stock doubled between early 2012 and April 2014 but then stalled at $16 and rolled over. It's been trying to rebound in the last two weeks along with the broader market.

Total option volume is triple the daily average so far today, with calls outnumbering puts by more than 17 to 1.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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