Monday, July 02, 2018 1:45:01 PM
Easy...trade...MRVL WILL BE INTERESTING...you can't trade this on just merger speculation...
June 29th...Marvell Technology Inc.'s (MRVL) merger sparked gains on Thursday yielded substantial gains on options positions opened just three sessions earlier.
On Tuesday, Investitute's tracking systems detected the purchase of 4,200 August $20 calls in one print for $1.23 with shares at $19.92. This was clearly a new position, as open interest in the strike was only 806 contracts before the trade occurred.
These investors likely were betting that not only had the shares reached support, having bounced from the same level three times prior, but also that China's State Administration for Market Regulation would approve Marvell's merger with Cavium. The investors may have bought the $20 calls, expiring on August 17, to capture Marvell management's expectation that the merger would close mid-2018.
Those August $20 calls sold for $2.31 on Thursday, nearly twice their purchase price. The stock rose 9.5% in the same time frame, showing how quickly options can outpace gains in their underlying shares.
Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.
Marvell Technology jumped 8.2% to $21.77 Thursday. The semiconductor and storage company rallied during the morning's trade after receiving approval from Chinese regulatory authorities for its proposed merger with Cavium.
Earnings due August, 23rd
Price range from $13 to 27...most suggest $27...so there's 10 %=$2 or more here...step aside or hedge below $20...
I like some of the picture so its a trade...in the hot semiconductor/chip sector...recent forward comments from company are very positive re: earnings...
From Adam Mesh's free morning report...
Marvell Technology Group Ltd. (NASDAQ: MRVL)
Marvell Technology Group Ltd. designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits.
MRVL has a key level of support at $20 (green). The stock looks like it may be getting ready to make its way back down to that level again, and traders should be able to expect some sort of a bounce from there. However, if the $20 support level were to break, lower prices should follow.
The Tale of the Tape: MRVL has key support at $20. A trader could enter a long position at or around $20 with a stop placed under the level. If the stock were to break below the support, a short position could be entered instead.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven't thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you'll be around for the next trade. Capital preservation is always key!
Mesh is on the fence here...At least that's what I'm hearing...
So; read all of this next link
https://www.traderspro.com/#/stockAnalysis/MRVL
They suggest some weakness near term...so...?
Listen to the 60 minute chart...read all this even the fundamental parts...
Also...Backtesting a stock can provide investors with critical statistical data. These results give you an informed perspective on how a stock trades within your chosen buying and selling method of analysis. The definition of trade expectancy is defined as: trade expectancy = (probability of win * average win) - (probability of loss * average loss). If the calculation returns a positive number, a trader should make money over time.
I can look back to see if a 3average cross 5day average resulted in plus 10% moves. Here's the system...I want the CCI oversold and 3cross5 trades only...Easy enough...you can see it happen on the MACD 3,5,0...this game is only as complicated as you want to make it...after you're in you want 3day to cross 10 day average...and there is a gooooood chance a trend is forming...why make it more complicated..I have a couple of technical signals ...some bullish price targets...a merger story and the stock is in a hot sector...people don't believe me when I say I intend to own them all at no cost... I own a bunch of these semiconductor stocks...I do it all the time...I'm focused on CY and AMD right now and can add MRVL...there's a time to buy and a time to sell...and you keep doing it so you can own the stock at no cost...commissions and taxes are just the cost of a ticket to ride. Then I shift the stock over into my long term account...
Daily...ignore the last blue line it keep showing and I didn't put it there...
June 29th...Marvell Technology Inc.'s (MRVL) merger sparked gains on Thursday yielded substantial gains on options positions opened just three sessions earlier.
On Tuesday, Investitute's tracking systems detected the purchase of 4,200 August $20 calls in one print for $1.23 with shares at $19.92. This was clearly a new position, as open interest in the strike was only 806 contracts before the trade occurred.
These investors likely were betting that not only had the shares reached support, having bounced from the same level three times prior, but also that China's State Administration for Market Regulation would approve Marvell's merger with Cavium. The investors may have bought the $20 calls, expiring on August 17, to capture Marvell management's expectation that the merger would close mid-2018.
Those August $20 calls sold for $2.31 on Thursday, nearly twice their purchase price. The stock rose 9.5% in the same time frame, showing how quickly options can outpace gains in their underlying shares.
Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.
Marvell Technology jumped 8.2% to $21.77 Thursday. The semiconductor and storage company rallied during the morning's trade after receiving approval from Chinese regulatory authorities for its proposed merger with Cavium.
Earnings due August, 23rd
Price range from $13 to 27...most suggest $27...so there's 10 %=$2 or more here...step aside or hedge below $20...
I like some of the picture so its a trade...in the hot semiconductor/chip sector...recent forward comments from company are very positive re: earnings...
From Adam Mesh's free morning report...
Marvell Technology Group Ltd. (NASDAQ: MRVL)
Marvell Technology Group Ltd. designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits.
MRVL has a key level of support at $20 (green). The stock looks like it may be getting ready to make its way back down to that level again, and traders should be able to expect some sort of a bounce from there. However, if the $20 support level were to break, lower prices should follow.
The Tale of the Tape: MRVL has key support at $20. A trader could enter a long position at or around $20 with a stop placed under the level. If the stock were to break below the support, a short position could be entered instead.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven't thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you'll be around for the next trade. Capital preservation is always key!
Mesh is on the fence here...At least that's what I'm hearing...
So; read all of this next link
https://www.traderspro.com/#/stockAnalysis/MRVL
They suggest some weakness near term...so...?
Listen to the 60 minute chart...read all this even the fundamental parts...
Also...Backtesting a stock can provide investors with critical statistical data. These results give you an informed perspective on how a stock trades within your chosen buying and selling method of analysis. The definition of trade expectancy is defined as: trade expectancy = (probability of win * average win) - (probability of loss * average loss). If the calculation returns a positive number, a trader should make money over time.
I can look back to see if a 3average cross 5day average resulted in plus 10% moves. Here's the system...I want the CCI oversold and 3cross5 trades only...Easy enough...you can see it happen on the MACD 3,5,0...this game is only as complicated as you want to make it...after you're in you want 3day to cross 10 day average...and there is a gooooood chance a trend is forming...why make it more complicated..I have a couple of technical signals ...some bullish price targets...a merger story and the stock is in a hot sector...people don't believe me when I say I intend to own them all at no cost... I own a bunch of these semiconductor stocks...I do it all the time...I'm focused on CY and AMD right now and can add MRVL...there's a time to buy and a time to sell...and you keep doing it so you can own the stock at no cost...commissions and taxes are just the cost of a ticket to ride. Then I shift the stock over into my long term account...
Daily...ignore the last blue line it keep showing and I didn't put it there...
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