Marvell Technology (NASDAQ:MRVL), up 5% at $240.63 at last check amid sector tailwinds, is scheduled to report second-quarter earnings before the market closes on Thursday, Aug. 27. According to Zacks Research, analysts expect earnings of 93 cents per share on projected revenues of $2.72 billion, representing a 38.8% and 35.2% year-over-year increase.
Options traders are pricing in an 13.6% post-earnings move, regardless of direction, comparable to MRVL's average reaction of 13.3% over the last eight quarters. The shares have finished higher after five of these last eight reports, including a 18.6% pop in March.
At the start of the month, the equity regained support at the 20-day moving average, though the $250 level appears to be providing some pressure. Year to date, MRVL is up 183.2%.
Options traders have been more optimistic than usual. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the retail stock's 50-day call/put volume ratio of 3.05 ranks higher than 92% of readings from the past year.
Echoing this is MRVL's Schaeffer's put/call open interest ratio (SOIR) of 1.32, which sits in just the 92nd percentile of its annual range, suggesting short-term option players have rarely been more put-heavy during the past 12 months.
Lastly, MRVL's Schaeffer's Volatility Scorecard (SVS) sits at a relatively high 87 out of 100, indicating the stock has tended to exceed option traders' volatility expectations during the past year.
Join thousands of traders who make more informed decisions with our premium features.
Real-time quotes, advanced visualizations, alerts, and much more.