$MRVL put buyers score intraday

$MRVL put buyers score intraday

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Bearish option positions opened this morning in Marvell Technology Inc (MRVL) are paying off already.

This morning on Aug. 24Market Rebellion’s Unusual Activity Service found that 3,000 Weekly $55 puts, expiring Aug. 25, were bought for $0.69 to $0.70 above the existing open interest of 1,,386 contracts with shares at $59.85.

Those puts have traded for as much as $1.25 this session, a 78.57% return, while the stock fell 3.46% in the same time frame, illustrating the kind of leverage that can be achieved quickly with options.

Long puts lock in the price where a stock can be sold no matter how far it might drop, gaining value in a selloff with the potential for significant leverage. The contracts can be purchased either as an outright bearish bet or a hedge on a long-stock position.

MRVL was last down 5.85% at $57.90.

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