Call Volume Spiking in Marvell (MRVL)

Shares of Marvell Technology Group MRVL are higher on the session by 1.45%, currently trading at $19.56. The stock has been moving largely higher over the past three months after bouncing off of the $14.50 level. Shares are nearing resistance at $19.75-20.00. There has been some LBO chatter regarding MRVL this morning, which is spiking call volume in the name. Within the first fifteen minutes of trading, 14,000 calls have traded versus only 5,000 puts. The majority of this action is coming on the November $20.00, $21.00, and $22.00 strikes, where 3,300, 5,600, and 1,600 contracts have traded, respectively. The majority of the action has been purchases on the offer, which pushed vol on those strikes to ~46% volatility. The average 30-day volatility in MRVL is only 37%. Marvell Technology Group Ltd. is a fabless semiconductor provider of application-specific standard products. The company develops complex system-on-a-chip devices using its technology portfolio of intellectual property in the areas of analog, mixed-signal, digital signal processing and embedded advanced RISC machine (ARM)-based microprocessor integrated circuits.