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MRVL Mar07 17.50 P

holzie said: "I like MRVL at this level. I don't like to give Cramer too much weight but I think in this instance he is right...MRVL is about to report the worst quarter and the street knows it, which is why they might be wanting to bid it up. Either way, Cramer wants it under $18, I wanted it cheaper with a much bigger discount, so I sold the March 17.50 put (naked) for 0.65. So, my ultimate goal is to own 100 shares of MRVL for 17.50 - 0.65 = $16.85/share. If it doesn't work out and Marvell stays higher, at least I will get paid for my efforts of trying to get the stock. Here is the trade: -1 MRVL March07 17.50 Put ------------------------------ Credit: 0.65 Margin: $309 Initial profit: 65/309 = 21.04% (If not put the stock) If I am "put" the stock, I will not wait for the stock to just "move up". I will be selling the calls ($20 strike) against it each month, until "called out" at $20/share. I will get to keep all the premiums in between for the puts and calls and collect the $2.50/share (20-17.50) difference at the end. I will update this trade periodically, if I make any changes or additional trades but it will be pretty boring to follow this trade. I mean, I already said that I wanted either situation to occur so it's a win-win trade..just a cumbersome way to get the stock perhaps, but I think it beats putting in a limit order though. Holzie."

drdan said: "What is your stop loss? I see $10 as a possibility. The thing that scares me about this company is that they are possibly being delisted from the NASDAQ, if they do not comply. They need to report their quarters from July and October! Also they need to reveal the results from their internal investigations on how they are handling stock options. Theres a nasty thing to say right now - mishandling of stock options. All this has to be done before March 7th. Exciting speculative play for you Holz!"

holzie said: "[QUOTE=drdan]What is your stop loss? I see $10 as a possibility. The thing that scares me about this company is that they are possibly being delisted from the NASDAQ, if they do not comply. They need to report their quarters from July and October! Also they need to reveal the results from their internal investigations on how they are handling stock options. Theres a nasty thing to say right now - mishandling of stock options. All this has to be done before March 7th. Exciting speculative play for you Holz![/QUOTE] Yeah I hear ya. I see the floor at the $15 strike actually if something goes really really bad. I guarantee you that they won't get delisted though -- too big too important of a company....Options backdating -- investors yawn at this point when they hear that. But like you said it is somewhat speculative. Given the fact that I actually want the stock makes it less of a speculation for me. Like you said anything can happen but the good thing about stock is that there is no time decay :) It's such a small fraction of my portfolio that it is more of an attractive diversification than anything else. Can't have all capital put into credit spreads. I also have a few calendars on PG that do very well.I just don't post every single trade..just the interesting ones. Thanks for your input. Holzie."

holzie said: "Hmm, MRVL is taking off to 19.35...it doesn't look good for being put the stock. The put is now worth 0.30."

holzie said: "Bought back my short 17.50 put for 0.30 at the open. The profit is 0.35 per option in 3 days. The initial play was to hope for being assigned shares of MRVL but the stock rallied $1.50 in 3 days to over 19.50. I sold the put when MRVL was 17.90. Under these circumstances, I decided to take profits early since the option was worth 50% less in just only 3 days. MRVL is out for my stock play at this point. Holzie."