Likes Received
Posts$Marvell Tech(MRVL.US)'s stock price surged after 06/02. Although it experienced a significant pullback in the most recent trading day, its volatility remains at historically high levels. The current short-term volatility exceeds 120%, which will undoubtedly attract a significant number of option 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 decline in the stock price on the most recent trading day, the direction of the volatility spread diverged. The two nearest-expiry options sharply rebounded towards positive values. The defensive stance of short-term put options is very clear. Interestingly, options expiring in three weeks and one month show a decline towards negative values. In other words, options expiring beyond three weeks still maintain a predominantly bullish bias.Market participants of $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 option positions. The most noticeable feature is the large influx of new put option positions for the 06/18 expiry. For other expiry dates, bullish and bearish positions are roughly balanced.The bottom-right chart shows the daily changes in call option positions since early April. The massive wave of call option opening initiated on 05/27 has not subsided, maintaining a white-hot scale of position building every day.Summary: Even though the stock price fell, volatility still managed to reach new highs. Furthermore, the volatility spread clearly shows a lack of synchronization between short-term and medium-to-long-term options. Personally, I maintain a relatively optimistic view on $Marvell Tech(MRVL.US)'s stock price.
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
Post your comment
No Comments