Marvell Technology Group Ltd. (MRVL) Bulls Target Multi-Year Highs

Call buyers have set their sights on Marvell Technology Group Ltd. (MRVL)

Mar 6, 2015 at 11:47 AM
facebook X logo linkedin


Call buyers have been flooding Marvell Technology Group Ltd.'s (NASDAQ:MRVL) options pits in recent months. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), for example, the equity's 50-day call/put volume ratio of 6.60 ranks in the 71st annual percentile. In other words, calls have been bought to open over puts at a faster-than-usual clip.

Echoing this call-skewed bias is MRVL's Schaeffer's put/call open interest ratio (SOIR) of 0.18. Not only does this show that call open interest outweighs put open interest by a more than 5-to-1 ratio among options set to expire in three months or less, but it ranks lower than 91% of similar readings taken in the past year. Simply stated, short-term speculators have rarely been as call-heavy as they are now toward the security.

It's a similar backdrop in today's trading, with calls crossing the tape at 1.5 times what's typically seen at this point in the day, and outpacing puts by a more than 17-to-1 margin. Receiving notable attention is the stock's March 17 call, where it appears a number of positions are being bought to open. By initiating the long calls, traders expect MRVL to topple $17 -- a feat not accomplished in four years -- by the close on Friday, March 20, when front-month options expire.

This upbeat outlook isn't too surprising, given MRVL's recent flexing of technical muscle. Since hitting an annual low of $11.65 in mid-October, the equity has rallied 42% -- and hit a multi-year peak in February -- to trade at $16.53. What's more, the brokerage bunch is beginning to share in this optimism. Specifically, Susquehanna this morning raised its price target on Marvell Technology Group Ltd. (NASDAQ:MRVL) by $6 to $20, and upped its rating to "positive" from "neutral," expressing confidence in the company's ability to find a strategic alternative for its handset division.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI