The company will sell its automotive ethernet business to Infineon
Marvell Technology Inc (NASDAQ:MRVL) stock is up 8.4% at $55.27 at last check, following news that the company will sell its automotive ethernet business to Infineon Technologies for $2.5 billion in an all-cash traction.
Shares are today pacing for their biggest single-day percentage gain since December, but still carry a hefty 50.7% year-to-date deficit. The equity is bouncing off yesterday's 52-week low of $47.09 as it continues to contend with long-term overhead pressure from the 20-day moving average.
Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day put/call volume ratio stands in the 92nd percentile of annual readings. This means options traders have been much more bearish than usual.
Drilling down to today's options activity, 25,000 puts have already crossed the tape, which is 5 times the volume typically seen at this point. The most popular contract is the weekly 5/2 55-strike put, but new positions are currently being opened at the September 45 put.