What’s the Setup?
Marvell Technology (MRVL) has been a hot mover recently, fueled by its AI-driven expansion and earnings beat. Currently trading at $116.46, the stock exploded 23% post-earnings, crushing expectations. Volatility is high, and traders are piling into options contracts.
With that in mind, we’re looking at a short-term put trade that can profit from a quick pullback while the stock consolidates.
The Trade: High-Momentum Put Play
📌 Trade: Buy the MRVL May 16, 2025, $100 Put
🔹 Entry Price (Bid/Ask Spread): $5.45 - $5.60
🔹 Open Interest: 5,617 contracts (high activity)
🔹 Implied Volatility (IV): 55.79% (elevated, but not excessive)
🔹 Delta: -0.2400 (offers downside exposure while limiting risk)
🔹 Theta (Time Decay): -0.0492 (manageable over a short hold)
Why This Works for a Fast Trade
- Volume & Liquidity: With 5,617 contracts in open interest, this put has the liquidity needed for quick entries/exits—a must for day traders.
- Stock is Overextended: After a 23% rally, MRVL is sitting near resistance and could pull back to support ($110-$112) before its next move higher.
- IV is Manageable: 55.79% IV is high but not at peak levels, meaning there’s still potential for volatility expansion if selling pressure kicks in.
- Delta & Risk Control: At -0.24 delta, this trade profits well if MRVL pulls back toward $112-$110, but doesn’t overexpose us to extreme moves.
Execution & Exit Plan
- Entry: Enter the position at or near the mid-point of the bid-ask spread (~$5.50).
- Profit Target: Look to exit around $7.50-$8.00 if MRVL retests $110-$112.
- Stop Loss: If MRVL pushes above $118, cut the trade (this invalidates the near-term pullback thesis).
- Hold Timeframe: 1-3 trading days—this is not a long-term hold.
The Trader’s Take: Keep It Fast, Keep It Tight
This $100 put is the perfect fast-paced trade for an overextended stock that just ran 23%. MRVL is showing signs of short-term exhaustion, and a pullback toward $110-$112 would send this put soaring.
💥 In, out, get paid. Don’t hold too long—if it works, take profits. If MRVL keeps pushing up, bail out fast. This isn’t a marriage, it’s a hit-and-run trade.
💸 Ryan’s Rating: 🔥🔥🔥🔥 (Strong Short-Term Play)
Final Thoughts:
For a fast-moving trader, this $100 put offers liquidity, downside exposure, and a solid risk/reward setup. Perfect for catching a quick pullback in an overheated stock before it resumes its AI-driven climb.
👊 Hit it. Quit it. Take the money. 🚀
MRVL