Bulls score again in $MRVL

Option traders doubled their money on upside positions in Marvell Technology today.

On April 16, Investitute’s tracking systems showed that 4,400 Weekly $24.50 calls expiring on May 3 were bought for $0.49 to $0.51 above open interest of 103 contracts as part of a bullish roll with shares at $24.08. Investitute co-founder Pete Najarian cited the unusual activity at that time on CNBC’s “Halftime Report.”

Those calls traded for as much as $0.98 today, twice their initial purchase price. The stock rose 4.57% in the same time frame, underscoring how quickly options can far outperform their underlying shares.

Those calls traded for as much as $0.98 today, twice their initial purchase price. The stock rose 4.57% in the same time frame, underscoring how quickly options can far outperform their underlying shares.

It is the second winning trade in the name posted on Investitute in barely a week.

Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.

MRVL was up 1.13% to $25.12 today. On April 17, Citi raised its price target on the chip company to $28 from $22, citing improving fundamentals and “growing M&A appeal.”