Semiconductor stocks sold off this week despite strong demand for chips used to power smartphones, laptops and cars. I believe this will be a short-term decline.
I am recommending we roll our Marvell Technology Group (MRVL) put and Micron Technology (MU) call as we continue to work our way toward breakeven on these positions.
MRVL Jul Monthly (7/16) 59 Put
Current Stock Price: $56.22
Net Debit: $1.28
Action:
- Buy to close the MRVL Jul Monthly (7/16) 59 Put for around $2.84
- Sell to open the MRVL Jul Week Five (7/30) 59 Put for around $3.30
- Set your initial credit limit at $0.46, but adjust as needed to roll today
New Net Debit: $0.82
Expiration: After the close on Friday, July 30
Potential Rate of Return: I am targeting breakeven for this position
MU Jul Monthly (7/16) 83 Call
Current Stock Price: $77.50
Cost Basis: $83.14
Action:
- Buy to close the MU Jul Monthly (7/16) 83 Call for around $0.04
- Sell to open the MU Jul Week Four (7/23) 80 Call for around $0.50
- Set your initial credit limit at $0.46, but adjust as needed to roll today
New Cost Basis: $82.68
Expiration: After the close on Friday, July 23
Potential Rate of Return: I am targeting breakeven for this position