MRVL IV play for next week?

asked by u/swing_samir · 13d · 2 answers

Looking at $MRVL, after today's +9.85% move to 237.27, implied volatility has certainly ratcheted up. I'm seeing an interesting setup for next week's options, particularly for anyone playing an IV crush scenario. The stock has had a solid run from its low of 228.1001 today, hitting 245.489 at one point.

My thought is that if we see some consolidation early next week, and $MRVL doesn't break above 246-248 convincingly, a short straddle or strangle around the current at-the-money could be a decent play into expiration. The risk, of course, is a continued strong trend either way, particularly if it breaks above that 248 mark with momentum or dips significantly below 230.

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Top answers

  • u/irina.stoica· 3 pts· 13d

    It's a common play, but MRVL has shown some stubbornness in the past when it comes to significant IV crushes post-run. What makes you confident this time will be different, especially with the general market sentiment being a bit skittish?

  • u/rwilliams· 1 pts· 13d

    That's an interesting take on MRVL. Given the significant jump today, I'm also wondering if the move has been largely priced in for the short term, potentially setting up for an IV crush if there isn't further substantial news.