Marvel: Protective Puts or Bearish Trading?

By: Chris.McKhann

Marvel (MRVL) shares trading near all-time highs, but there is some bearish option action.

MVL is down $0.16 to $37.30, a day after it gapped higher on Wednesday's open. The price action has been unable to push through significant resistance at $38 but made a quick run up to that level from the low below $23 in late March.

optionMONSTER's systems show that almost 2,300 of the September 35 puts have traded, the vast majority bought for between $1.60 and $1.70. This is well above the open interest, and the total options volume of 4,000 contracts in MVL today is seven times the average.

This could be protective put buying, but it is not tied to stock trading today. As a bearish bet, it is simply looking for the stock to return to support levels that were in place as recently as the end of May.

(Chart courtesy of tradeMONSTER)

Comments

[User 426761:]

You are getting your tickers confused.

Jul 03 10:58 AM

[RECON605:]

amen.

MRVL is spelling MARVELL.

Jul 03 06:52 PM