Marvell Technology (MRVL) looks to have found short-term support at $40, and the option premiums are very rich. I am recommending we roll our put out two weeks to pick up a large amount of cash.
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: $42.27
Net Debit: $18.83
- Buy to close the MRVL Dec Week Two (12/9) 40.50 Put for around $0.02
- Sell to open the MRVL Dec Week Four (12/23) 40 Put for around $0.99
- Set your initial credit limit at $0.97, but adjust as needed to roll today
New Net Debit: $17.86
Expiration: After the close on Friday, Dec. 23
Potential Rate of Return: I am targeting breakeven for this position