$Marvell Tech(MRVL.US)'s stock price surged after 06/02. Although it experienced a significant pullback in the most recent trading day, volatility remains at historically high levels. The current short-term volatility exceeds 120%, which is sure to attract many options traders to sell options.
The top-right chart shows the recent trend of the Put/Call volatility spread. In this chart, we can see that with the sharp drop in stock price on the most recent trading day, the trend of the volatility spread has diverged. Options expiring soon have sharply rebounded towards positive values. The defensive stance of short-term put options is obvious. Interestingly, options expiring in three weeks and one month are trending towards negative values, meaning that options expiring after three weeks are still predominantly bullish.Market participants in $Marvell Tech(MRVL.US) believe the recent stock price decline is due to external factors, and these so-called external factors are expected to be corrected and covered within two to three weeks.The bottom-left chart shows the intraday changes in options positions. The most noticeable is the significant increase in new put option positions for options expiring on 06/18, while for other expiration dates, bullish and bearish positions are roughly balanced.The bottom-right chart shows the daily change in call option positions since early April. The large wave of call option opening initiated on 05/27 has not subsided, maintaining a white-hot scale of position building every day.In summary: Even though the stock price fell, volatility still managed to reach new highs. Furthermore, the volatility spread clearly shows a divergence between short-term and medium-to-long-term options. I personally maintain a relatively optimistic view on $Marvell Tech(MRVL.US)'s stock price.
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