Marvell Technology (MRVL) is scheduled to report earnings tomorrow. I considered closing our put and re-entering after the announcement, but I have instead decided to roll out two weeks. We can pick up a good deal of cash, giving us flexibility in managing the position going forward.
Current Stock Price: $67.73
Cash in Hand: $3.76
Action:
- Buy to close the MRVL Mar Week One (3/4) 67.50 Put for around $4.10
- Sell to open the MRVL Mar Monthly (3/18) 67.50 Put for around $5.15
- Set your initial credit limit at $1.05, but adjust as needed to roll today
New Cash in Hand: $4.81
Expiration: After the close on Friday, March 18
Potential Rate of Return: 7.1% in 32 days, or 81% annualized, if this option expires worthless