Semiconductor Stock Hit With Post-Earnings Bear Notes

The options pits are bursting with activity this morning

Deputy Editor
Mar 4, 2022 at 10:30 AM
facebook twitter linkedin


Semiconductor stock Marvell Technology Inc (NASDAQ:MRVL) is up 0.3% at $65.42, after reporting slightly better-than-expected fourth-quarter results. To follow, four analysts slashed their price targets, including Wells Fargo to $70 from $80, while Rosenblatt Securities raised its price target by $5 to $125. 

On the charts, MRVL has been consolidating below the $69 level for the past few weeks, with pressure from its 160-day moving average. Year-to-date, the equity is down 25.2%. 

Unsurprisingly, Marvell stock's options pits are flooded with activity this morning. So far, 48,000 calls and 20,000 puts have crossed the tape -- nine times the intraday average -- with options volume pacing for the top percentile of its annual range. Expiring today, the weekly 3/4 70-strike call is the most active, and new positions are being bought to open there. 

Analysts are overwhelmingly bullish on MRVL, with 21 of the 24 in coverage carrying a "buy" or better rating. Plus, even after today's various price-target cuts, the 12-month consensus price target of $96.88 is still a 47.4% premium to current levels. 

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 

300x250 - Banner 3 - v1