Selling MRVL puts for income.
Marvell Tech (MRVL) is a “fabless” computer chip maker. That means the company doesn’t have it’s own factory, but designs and manufactures computer chips for networking and storage customers.
By using factories owned by other companies, MRVL keeps costs low while focusing on the technology applications that the company is especially good at.
Profits are projected to grow thanks to strong demand from data center customers. The stock pulled back alongside the broad tech market, but is now finding support.
By selling the March $65 puts near $2.60, we’re able to collect an annualized yield near 49%, while also giving us roughly $7.50 per share in cushion between the current market price for MRVL and our strike price.
- Sell (to open) 1 MRVL March 18th $65 put
- Limit: $2.60 or more
- The new position will represent roughly 6.6% of our model.
- 14:44 Executed
- Sold 1 MRVL March 18th $65 Put @ $2.75