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Quantchabot has detected a promising Bull Put Spread trade opportunity for MARVELL TECHNOLOGY (MRVL) for the 26-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

MRVL was recently trading at $51.42 and has an implied volatility of 42.97% for this period. Based on an analysis of the options available for MRVL expiring on 26-Feb-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $51.43-$59.64 at expiration. In this scenario, the average linear return for the trade would be 73.68%.

52 week high: MARVELL TECHNOLOGY recently reached a new 52-week high at $51.45. MRVL had traded in the range $16.45-$51.23 over the past year.

Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if MRVL maintains its current direction and does not revert back to pricing on the bearish side of $51.42 on 26-Feb-2021. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bullish strategy, the trade would be profitable if MARVELL TECHNOLOGY closes at or above $51.40 on 26-Feb-2021. Based on our risk-neutral analysis, there is a 50.17% 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.