Buy Call MRVL

March 6, 2025
Sell a Third of Three Positions: Sell a Third of your SOFI July 16 Calls for $1 or more, a third of your JETS January 26 Calls for $1 or more, and a Third of your MRVL June 115 Calls for $1 or more.

For the past three weeks, the market has been through the ringer, as every sign of hope is quickly washed away, followed by further index and stock breakdowns. While it’s hard to call the selling a true crash, it’s not too far off when you look at many individual stocks.

Because of this nasty market action, we are going to sell pieces of three positions today.

To execute these trades you need to:

Sell to Close a Third of your SOFI July 16 Calls

Sell to Close a Third of your JETS January 26 Calls

Sell to Close a Third of your MRVL June 115 Calls

The biggest loser in this group is MRVL, which is down 18% on earnings today. If you wanted to call the recent market action a crash, the Semiconductor/AI theme in which MRVL plays would be the prime evidence of just how bad the selling has been.

Stepping back, hopefully these sales are a terrible mistake and the market and all three of these stocks soon find their footing again.

January 31, 2025

Re-Buy Existing Position: Buy Back the Third of your MRVL June 115 We Sold for $16.80 or less.

Monday saw a shockwave hit the AI/Semiconductor space that sent stocks in that category into freefall. Since then, many of these stocks have rebounded, though are still far from their highs.

That being said, option activity in the leaders from that group have attracted big call buying EVERY day since Monday, led by MRVL. Here are a couple of examples of those trades:

Today: Buyer of 2,000 Marvell (MRVL) March 115 Calls for $10.40 – Stock at 115

Tuesday: Buyer of 7,000 Marvell (MRVL) April 130 Calls for $3 – Stock at 104 (rolled back from April 150 calls)

This call buying MRVL is only a small sample of the call buying I’m seeing in other AI infrastructure leaders such as AVGO and more.

Thus, we are going to re-buy the piece of our MRVL calls we sold for $20.15 two weeks ago for $16.80, and see how this AI/Semiconductor situation plays out.

To execute this trade you need to:

Buy to Open the MRVL June 115 calls (the piece of the trade we sold previously)

Let me be clear, buying back this piece of this MRVL trade may prove to be a mistake if the sector gets rocked again—and there is absolutely that chance as no one truly knows the ramifications of the Chinese DeepSeek offering.

That being said, I really like the steady call buying in MRVL, so let’s fill our position back out.

January 17, 2025

Sell a Third of Existing Position: Sell a Third of your MRVL June 115 Calls for $20 or more.

MRVL is trading higher again today, boosted by a strong earnings beat from “peer” Taiwan Semiconductor (TSM) yesterday and a market advance today. And while I think the odds favor MRVL trading higher in the weeks to come, the market is a bit more suspect. For that reason, let’s stick to the plan and lock in a quick profit of approximately 20% on a third of our calls.

To execute this trade you need to:
Sell to Close a Third of your MRVL June 115 Calls

As is always the case when we take partial profits, we hope this initial sale is a mistake and the stock and our calls trade higher in the weeks/months to come.

January 15, 2025
New Trade: Buy the Marvell (MRVL) June 115 Calls (exp. 6/20) for $18 or less

We have been paring back the portfolio in the last two weeks, as well as not buying new positions, which has been the right move as the market has been under pressure. Because of this somewhat defensive stance, it’s time to get off the sidelines with our first stab into the market decline.

First, let’s add MRVL to the portfolio as the stock has pulled back some but looks great compared to its growth peers and continues to attract bullish options.

To execute this trade you need to:

Buy to Open the MRVL June 115 Calls

The most you can lose on this trade is the premium paid, or $1,800 per call purchased.

Of note, there is absolutely risk in this new buy as the market is under pressure, and while MRVL looks great, should the sellers come after stocks with “meat on the bone,” MRVL will almost surely fall.

New Trade: Buy the Marvell (MRVL) June 115 Calls (exp. 6/20) for $18 or less