Options Corner: MRVL Earnings on Deck

Core Viewpoint - The company Marll is identified as an underperformer in the semiconductor sector, lagging behind peers like Qualcomm, Nvidia, AMD, Broadcom, and Micron, with a decline of over 15% this year despite a recent price increase [2][9]. Technical Analysis - The chart analysis indicates a broad upward sloping channel pattern, with key levels to watch being a recent low around 75 and a high near 98 [3][4]. - The moving averages show a clustering, indicating a lack of strong trend directionality, although there is a slight bounce observed [4]. - A breakout above the 50 midline and the downward sloping trend line is noted, with bulls looking for new highs and an RSI breakout above 70 for confirmation [5]. Volume and Expected Moves - The volume profile indicates a point of control near 75, which aligns with a recent low, while volume thins out above 90 and picks up again at 110 [6][7]. - The expected move for the upcoming expiration is approximately 10.8%, with downside support around 83 and upside resistance near 103 [7][8]. Options Strategy - A conservative options strategy is proposed, involving selling a 90 strike put and buying an 85 strike put to create a short $5 wide neutral to bullish put vertical, aiming for a credit of about $180 with a risk of $320 [10][12]. - The probability of the short 90 strike finishing out of the money at expiration is estimated at 55%, providing a cushion of over 5% to the downside [13][14].