IV on the MRVL October 12 calls rose from 67.36 last week to 72.90 on the close yesterday.
According to?RB Trader (www.rb-trader.com), shares of?Marvell Technologies (NASDAQ:MRVL) saw unusual options activity both Wednesday?and Thursday?in the October 12 calls. On Wednesday,?these calls traded 6,887 contracts versus only versus only 1,589 open interest.
Volume greater than open interest confirms that it is fresh buying, along with fact that 89 percent of the trades took place on the offer. Today, the buyer re-emerged, with 6,036 additional contracts trading.
In addition to the increased volume, the implied volatility (IV) on the October 12 calls rose as well, moving from 67.36 last week to 72.90 on the close yesterday. ?
Shares of MRVL are unchanged since 8/27, closing at 11.12 on that date and also yesterday. The October 12 calls, however, have increased 0.06 in that same time frame due to the buying pressure, even though time decay should have lowered the price of the calls by 0.04
This provides a stock equivalent edge of 1.88 percent based on the RB Trader proprietary edge calculator.