Investors in Marvell Technology Inc (NASDAQ: MRVL) can now trade new options set to expire on October 16, 2023. Notably, a put contract with a strike price of $290 has a current bid of $65.25, which would reduce the effective purchase price of shares to $224.75 for investors willing to buy at that strike price, providing a 2% discount from the current trading price of $296.59 per share. There’s a 64% probability that this put contract could expire worthless.
On the calls side, a contract with a $300 strike price is priced at a bid of $70.05. Should an investor sell this contract while holding MRVL shares, there’s a potential total return of 24.77% if the stock is called away at expiration. This $300 strike represents a 1% uplift from the current share price, and the odds of the contract expiring worthless stand at 38%. The options display high implied volatility, approximately 103%, against a trailing 12-month actual volatility of 65%.
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