Unusual Options Activity In Marvell Technology Group (NASDAQ: MRVL) Suggests A Big Move Is Coming – Mike Swanson (07/30/2018)

Something unusual is happening this morning with the options trading in Marvell Technology Group (Nasdaq: MRVL).  There has been a big increase in options activity and the implied volatility for the options has jumped up to 206%.  That means that options players are expecting MRVL shares to soon make a huge move.

The technical analysis price chart suggests the same thing as the 200-day Bollinger Bands on it have been narrowing for the past several months.  The stock has been trading in a narrowing range and a simple triangle pattern suggests a big move is coming.  This means price action is aligned with options activity.

My guess is that the stock will end up falling, because technology stocks as a whole have been weaker over the past few days and the relative strength indicator comparing the price of MRVL to that of the S&P 500 has been in a downtrend all year.  That means it’s lagging the market and will likely dump on any stock market pullback.

MRVL report earnings on August 23rd and is currently trading with a P/E of 23.45.  It is currently paying a 1.12% dividend.  Its next dividend date is in October.

Marvell Technologies is a semiconductor company and is in a sector that has seen several key leader stocks take hits recently.  Intel stock fell hard on Friday and Micron shares have also been lagging the market for weeks.  I am considering taking a short position in MRVL later today for a trade.

 

 



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