We temporarily exited our Marvell Technology (MRVL) position last week to avoid earnings risk.
Shares ran up after the company delivered revenue, earnings and a forecast that were slightly ahead of expectations.
I am recommending a put to sell to reduce our net debit on the position.
You can enter 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: $59.86
Current Net Debit: $12.19
Action: Sell to open the MRVL Jun Week Two (6/10) 55 Put
Current Option Price: $0.54-$0.60
Recommended Limit: Set your initial limit order at $0.57, but adjust as needed to sell a put today
New Net Debit: $11.62
Expiration: After the close on Friday, June 10
Potential Rate of Return: I am targeting breakeven for this trade