Marvell Technology (MRVL) has run up this week, including a more than 6% pop today. Yesterday, the company announced its first significant layoffs in years, cutting 320 jobs, or 4% of its workforce. The layoffs impacted the company’s entire R&D team in China and a few U.S. jobs.
Wall Street cheered the move to improve efficiency amid an industry slowdown. This is allowing us to roll our Marvell Technology (MRVL) put out two weeks to generate more income and reduce our net debit on the position.
Note that the new put expires on a Thursday, as the market is closed on Friday, April 7, in observance of Good Friday.
You can enter the second leg of today’s trade even if you were not in the previous one. Just be aware that we will be managing and tracking it based on the ongoing position.
Current Stock Price: $42.93
Net Debit: $15.04
- Buy to close the MRVL Mar Week Four (3/24) 42.50 Put for around $0.44
- Sell to open the MRVL Apr Week One (4/6) 42.50 Put for around $1.52
- Set your initial credit limit at $1.08, but adjust as needed to roll today
New Net Debit: $13.96
Expiration: After the close on Thursday, April 6
Potential Rate of Return: I am targeting breakeven for this position