A look at Earnings trades starring Marvell Tech & Aruba Networks

I had a chance to close some February Earnings trades today so that opened up some capital to put on new trades. I elected to create Risk Reversal Call Spread trades in $ARUN & $MRVL. Here are the specifics:

ARUN_MRVL

So let’s break these trades down. First, the $ARUN Risk Reversal Call Spread:

  • I am Long the February 21/22 Call Spread
  • I am Short the February 17 Puts
  • This was done for a small credit of $.05
  • With this trade you will need to be comfortable owning $ARUN at $16.95 (or be able to hedge with stock in A/H session if need be/desired)
  • The gain is capped at $1

Now on to $MRVL:

  • I am Long the February 16/16.5 Call Spread
  • I am Short the February 15 Puts
  • This was done for free
  • With this trade you will need to be comfortable owning $MRVL at $15 (or be able to hedge with stock in A/H session if need be/desired)
  • The gain is capped at $.50

One thought on “A look at Earnings trades starring Marvell Tech & Aruba Networks

  1. $ARUN ended up with a $2.05 gain on Options & a $.20 gain on a stock trade. $MRVL ended up with a $.57 gain on the trade.

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