It’s time to close our Marvell Technology Group (MRVL) position with a tiny profit. This may not feel like a win, but it is.
It took us more than five and a half months, but we have finally gotten to breakeven on a trade that was deep under water.
The MRVL trade is proof that our rolling and call selling strategies work to salvage positions that move against us. I will be reviewing this trade in more detail in Monday’s OIB Market Update.
Current Stock Price: $62.39
Cash in Hand: $0.17
Action: Buy to close the MRVL Aug Week One (8/6) 60 Put
Current Option Price: $0.09-$0.10
Recommended Limit: Set your initial limit order at $0.10, but adjust as needed to close today
Profit: $0.07, or $7 per contract
Rate of Return: 0.1% in 170 days, or 0.3% on an annualized basis