Marvell Technology Inc (NASDAQ:MRVL) stock is up 9.7% to trade at $96.30 at last glance, after Nvidia (NVDA) revealed it will invest $2 billion in an AI partnership with the tech hardware concern. NVDA is rising 2.6% on the news.
Shares are looking to snap their three-day skid and completely erase yesterday's 7.5% tumble. The security is resuming its climb after pulling back from last week's surge to its highest level since December. Longer term, Marvell Technology stock boasts a 41.6% year-over-year lead.
Short-term options traders have been overwhelmingly bearish toward MRVL, This is per its Schaeffer's put/call open interest ratio (SOIR) of 1.35, which ranks in the 98th percentile of readings from the last 12 months. This means an unwinding of pessimism could boost the shares.
Options traders are already targeting the stock, with 33,000 calls exchanged so far today -- nearly double the amount typically seen at this point -- compared to a 8,494 puts. The most active contract is the weekly 4/2 100-strike call, with the April 95 call not far behind.
Options look affordably priced as well. This is per the equity's Schaeffer's Volatility Index (SVI) of 60% that ranks higher than 21% of all other readings from the last year. In other words, near-term option traders are pricing in relatively low volatility expectations.
