Marvell Technology (MRVL) is scheduled to report earnings today after the close. Shares have held up well over the past month, but there is simply too much risk with a volatile stock like MRVL to hold a position through an earnings announcement.
Therefore, I am recommending we temporarily close the position by buying back the call and selling our shares. I plan to re-enter the position next week by selling a put to reduce our net debit.
I plan to discuss MRVL, along with the entire chip sector, in Monday’s Options Income Weekly LIVE (register here). Please tune in if you can and come prepared with any questions you may have about the stock or how we will be trading it in the new year.
Current Stock Price: $45.45
Cost Basis: $61.26
- Buy to close the MRVL Dec Week One (12/2) 43 Call for around $3.35, but adjust as needed to close today
- Sell shares at market
Net Debit: $19.16