Quantchabot has detected a new Bear Call Spread trade opportunity for MARVELL TECHNOLOGY (MRVL) for the 16-May-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MRVL was recently trading at $64.79 and has an implied volatility of 61.42% for this period. Based on an analysis of the options available for MRVL expiring on 16-May-2025, there is a 34.17% likelihood that the underlying will close within the analyzed range of $50.15-$65.33 at expiration. In this scenario, the average linear return for the trade would be 19.36%.
Big -8.54% Change: After closing the last trading session at $70.84, MARVELL TECHNOLOGY opened today at $68.35 and has reached a low of $64.72.
Trade approach: A movement as big as -8.54% is a significantly bearish indicator, so this trade is designed to be profitable if MRVL maintains its current direction and does not revert back to pricing on the bullish side of $64.79 on 16-May-2025. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bearish strategy, the trade would be profitable if MARVELL TECHNOLOGY closes at or below $65.33 on 16-May-2025. Based on our risk-neutral analysis, there is a 50.00% likelihood of this return.
Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.
To analyze this trade in depth, please visit the Quantcha Options Search Engine.
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