Marvell Technology (MRVL) has bounced around since we last rolled our put on April 20, hitting a low below $37 on April 25 before rebounding.

Today’s pop allows us to roll our put out two weeks and to a lower strike price to avoid assignment and reduce our risk on the trade while generating a nice credit.

Current Stock Price: $40.38

Net Debit: $13.80

Action:

• Buy to close the MRVL 5 May 41 Put for around $0.67
• Sell to open the MRVL 19 May 40 Put for around $1.19
• Set your initial credit limit at $0.52, but adjust as needed to roll today

New Net Debit: $13.28

Expiration: After the close on Friday, May 19

Potential Rate of Return: We are targeting breakeven for this position