Marvell Tech (MRVL) – An Outperformer Among Its Peers
MRVL gained 79% last year compared to a smaller rise of 51% in the SOXX Semiconductor ETF. The following two articles discuss why MRVL could continue to see more upside - These 3 Chip Stocks Have Room to Grow, Say Top Analysts and Top-Rated Stocks: Marvell Technology's Technical Ratings Rise.
____________ advertisment ______________
7 Hypergrowth Stocks to Buy for 2021
The Financial Times says that in 2021 tech stocks could soar to new heights! Learn how to profit from emerging tech trends today with Luke Lango's new report, "7 Hypergrowth Stocks to Buy for 2021."
Claim your FREE report today.
______________________________________
Technicals
After a recent break to an all-time high MRVL has been consolidating within a range for two weeks. Strong support is seen to the downside near $45.60 as this level acted as resistance back in November. There is also a rising trendline near the same price point as well as the 20-day moving average. With strong support to the downside, it might only be a matter of time before MRVL makes another run for new highs.
![MRVL Chart January 2021 MRVL Chart January 2021](http://www.terrystips.com/blog/wp-content/uploads/MRVL-Chart-January-2021.png)
*source Tradingview.com
If you agree there's further upside ahead for MRVL, consider this trade which relies on the stock remaining above $47.50 through the expiration in five weeks.
Buy To Open MRVL 5FEB21 45 Puts (MRVL21025P45)
Sell To Open MRVL 5FEB21 47.5 Puts (MRVL21025P47.5) for a credit of $1.00 (selling a vertical)
This credit is $0.02 less than the mid-point of the option spread when MRVL was trading near $47.50. Unless the stock rallies quickly from here, you should be able to get close to this amount.
Your commission on this trade will be only $1.30 per spread. Each spread would then yield $98.70. This reduces your buying power by $250 and makes your investment $151.30 ($250 – $98.70). If MRVL closes at any price above $47.50 on February 5, both options will expire worthless, and your return on the spread would be 65% ($98.70 / $151.30), or 741% annualized.
____________ advertisment ______________
The Top 5G Stocks to Buy Now
FREE Report: This new tech will be more impactful than the steam engine, electricity and the internet.
Click here to get the names of the stocks that are URGENT buys.
______________________________________
Changes to Investor’s Business Daily (IBD) Top 50 This Week:
![IBD Underlying Updates January 2, 2021 IBD Underlying Updates January 2, 2021](http://www.terrystips.com/blog/wp-content/uploads/IBD-Underlying-Updates-January-2-2021.jpg)
We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run. Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.
As with all investments, you should only make option trades with money that you can truly afford to lose.
Happy trading,
Terry
____________ advertisment ______________
Free Webinar: How To Turbocharge Your Options Trades in 2021
Start 2021 strong! You're invited to join Marc Chaikin (the creator of Chaikin Money Flow) on Tuesday, January 7th as he reveals his 2021 options trading checklist. Find out exactly what to check before pulling the trigger on an options trade, how to avoid the most common trading pitfalls, keys to combining technicals and fundamentals, and much more.
Click here to register now.
______________________________________
Any questions? Email Colin@terrystips.com
You can see every trade made in the actual option portfolios conducted at Terry’s Tips and learn all about the wonderful world of options by subscribing here. Why wait any longer to make this important investment in yourself?
Even better, you can become a Terry’s Tips Insider, and receive all our educational reports and materials absolutely free by opening a new account at the best options broker around - thinkorswim. If you open an account with our link, they will give you 60 days of free trading or up to $600, the same deals they give to everyone who opens an account with them. You must use this link to sign up - open thinkorswim account – and once you have funded your account with at least $3500, email Colin@TerrysTips.com and let him know that you have done it, and this is what he will do – sign you up for our Premium Service package ($97 monthly subscription). You get 1 month of services without paying us one penny. I look forward to having you on board, and to prospering with you.
Terry
|