Marvell Technology Group LtdMRVL
Mentioned
Impact on stocks 2
Artificial Intelligence
Marvell Technology Group Ltd
NVIDIA CorporationNVDA
Mentioned
Marvell Technology options traders are making an unusually aggressive bullish bet ahead of Thursday's earnings, with heavy activity building around $300 calls that expire Friday. The strike requires a move of more than 20% from Thursday morning levels, far beyond the roughly 10% swing already priced into the broader options market. Marvell supplies custom AI chips, networking, optical-connectivity, and data-infrastructure silicon for AI clusters, making it a closely watched alternative to Nvidia. Shares traded near $246 Thursday morning ahead of fiscal second-quarter results. The Aug. 28 $245 straddle cost roughly $24.48, implying a post-earnings range of approximately $220 to $270, yet traders piled into $300 calls, where volume reached 9,224 contracts against 8,747 contracts of existing open interest. At just $0.78 per contract, the position resembles a high-risk bet on an exceptional earnings reaction. Downside positioning is substantial too, with more than 6,100 $210 puts and over 6,000 $230 puts traded, showing investors are also protecting against a sharp disappointment. Wall Street expects roughly $2.71 billion of revenue and adjusted EPS of $0.93, while Marvell guided to $2.7 billion revenue plus or minus 5% and $0.93 non-GAAP EPS plus or minus $0.05. First-quarter revenue hit a record $2.42 billion, up 28% year over year. The $300 calls suggest some traders expect Marvell's forward outlook, rather than merely an earnings beat, to deliver the real surprise, with focus on AI networking, custom silicon, hyperscaler demand, and fiscal 2027 and 2028 guidance.
Marvell Technology Group LtdNVIDIA Corporation