Options Income Strategy | NVIDIA's Earnings Blowout! Marvell Surges on Pre-Earnings Accumulation

1. MRVL: NVIDIA's earnings catalyze the leader in custom AI chips, triggering a frenzy of capital inflows

$Marvell Technology (MRVL.US)$ Closed up 1.97% on Wednesday at $245.11, with a turnover rate of 1.96% and an amplitude of 3.49%. In after-hours trading, MRVL surged further, gaining 4.39%. As of press time, pre-market gains have expanded to over 5%.

Technical Analysis

Looking at the candlestick chart for the past 30 trading days, $Marvell Technology (MRVL.US)$ After the sharp drop in late July, the stock surged 12.81% on August 4 with heavy volume, breaking above the upper boundary of the previous consolidation range. Since mid-August, it has entered a high-level box consolidation pattern, with the price oscillating repeatedly between $225 and $245. It closed at $245.11 on Thursday, touching the upper boundary of the box and reclaiming the 60-day moving average, a level that previously acted as resistance where multiple rally attempts fell short.

The after-hours breakout pushed the price above $255. If it can hold above $250 following the earnings report, upside potential will open up in the short term. Resistance levels are located at the $260 integer mark and the area around the August 7 high of $270. Short-term support is found at $240 (the previous closing price) and near the August 25 low of $235.

In terms of capital flows, net inflows from main force funds amounted to $15.0833 million on August 26, with total net inflows reaching $45.7897 million. This marks two consecutive days of net inflows, indicating sustained bullish sentiment from institutional investors.

News Interpretation

The core catalyst comes from $NVIDIA (NVDA.US)$the strong earnings report released after hours.NVIDIA's revenue this quarter grew by over 70%, exceeding expectations, and it provided optimistic forward guidance. This performance directly validates the logic of continued expansion in AI infrastructure capital expenditure. As a key beneficiary in NVIDIA's supply chain, MRVL's custom AI chip (ASIC) and data center networking businesses directly benefit from accelerated procurement by downstream cloud providers. Additionally, recent reports indicate that $Alphabet-C (GOOG.US)$ Deepening custom ASIC collaboration with MRVL has further reinforced market expectations for high growth in its AI custom chip business.

Key variables to watch include: $Marvell Technology (MRVL.US)$ The company's guidance for the next quarter's earnings, confirmation of Google's ASIC order volume, and the sustainability of the AI capital expenditure cycle.

Major Bank Views

Among 27 analysts, 85.19% rate it as a Buy, with an average target price of $294.21, ranging from a low of $195 to a high of $400. Recently, Wells Fargo raised its target price to $310, Roth Capital to $350, and Jefferies to $325.

2. Short Option Strategies

IV Analysis

Currently, $Marvell Technology (MRVL.US)$ Implied Volatility (IV) is at 80.33%, with an IV Rank of 52.71% and an IV Percentile of 63.89%, indicating a medium-to-high level. Options market pricing suggests an expected post-earnings stock price fluctuation of approximately ±12.45%.

Cash-Secured Put

Sell 1 contract of $Marvell Technology (MRVL.US)$Sell the 2026-09-18 $200 Put, and reserve sufficient cash for potential assignment.

Opportunity Screening Logic:

$Marvell Technology (MRVL.US)$ Driven by $NVIDIA (NVDA.US)$ The stock surged after hours following earnings, continuously validating the robustness of the AI custom chip sector. However, chasing highs directly carries the risk of profit-taking pullbacks. Investors bullish on MRVL's long-term thesis can consider selling out-of-the-money PUTs. If the stock pulls back to this level, positions can be established at an ideal price; if it remains range-bound at high levels, premiums can be collected upon expiration, effectively enhancing returns on idle cash.

Covered Call

Hold 100 shares $Marvell Technology (MRVL.US)$At the same time, sell 1 contract of MRVL Sep 18, 2026 $300 Call

Opportunity screening logic:

For investors already holding MRVL shares, the current stock price is approaching previous resistance levels after a consecutive rally. In the short term, there is a possibility of a pullback after a surge or high-level consolidation. However, since the long-term thesis for AI chips remains intact, it is not advisable to sell outright. If investors remain bullish on MRVL, they may consider selling out-of-the-money Calls to collect premiums and reduce their cost basis. If the stock price continues to rise to $300 and the options are exercised, resulting in the sale of the underlying shares, this effectively locks in gains near the target price.

3. Risk Control Notes

Although short-option strategies generally have a high probability of profit, investors must still implement sound risk management:

- Position management is core. The biggest risk for option sellers lies in black swan events. It is recommended that margin usage for a single underlying asset should not exceed 20% of total capital. Do not sell options beyond your capacity to bear potential losses just to chase premiums.

- Pay attention to rolling positions for Covered Calls. When a Covered Call becomes deep in-the-money, if you remain bullish on the underlying stock, consider buying back the current option to close the position and simultaneously selling an option with a further expiration date and a higher strike price. This helps avoid having the underlying shares forcibly sold at a lower price.

- Be wary of left-tail risks when writing cash-secured puts. If the stock price drops significantly due to deteriorating fundamentals, do not mechanically hold on. Instead, cut losses or roll down the position based on your risk tolerance.

Make good use of the Option Seller Zone to understand income strategies for selling options,and earn option premiums!

Investors can openFutubull >> Market >> Options >> Seller Zone >> Filter, to filter for option underlyings that suit their risk appetite and investment needs.

The screening criteria for the option cases provided in this article are:

Stock Screening: Market Cap > $10 billion; IV > 70%; IV Percentile > 50%; Total Option Volume > 60,000 contracts

Option Screening: Days to Expiration (DTE) 0-45 days; Probability of OTM > 70%; Return > 2%; Annualized Return > 30%; Volume > 100 contracts

Underlying Selection Rule: Sorted by probability, prioritizing underlying assets with higher probabilities. Probability refers to the likelihood that the sold option contract will not be exercised, i.e., the Out-of-the-Money (OTM) probability. A higher probability indicates a lower chance of being assigned, and thus a greater likelihood of securely collecting the option premium.

All data and information in the Option Seller Zone are for reference only and do not constitute any investment advice.

This content is for reference only and should not be regarded or construed as an offer, solicitation, invitation, or recommendation to buy or sell any investment products, nor as a basis for investment decisions. It should not be interpreted as professional advice. Option contracts are derivative products and are not suitable for all investors. You should carefully assess whether you are suitable for participating in such trading based on your own investment experience, investment objectives, financial resources, and other relevant conditions.

The risk of loss in trading option contracts can be substantial. In certain circumstances, the losses you incur may exceed the initial margin deposited. Even if you have set contingency orders, such as "stop-loss" or "limit" orders, losses may not be avoided. Market conditions may prevent these orders from being executed. You may be required to deposit additional margin within a short period. If you fail to provide the required amount within the specified time, your open positions may be liquidated. However, you will still be liable for any deficit in your account resulting from this. Therefore, before trading, you should study and understand options, and carefully consider whether such trading is suitable for you based on your financial situation and investment objectives. If you trade options, you should be familiar with the procedures for exercising options and at expiration, as well as your rights and obligations upon exercise and at expiration. "Futubull" is a one-stop financial investment and trading platform, with securities services provided by Futu Securities International (Hong Kong) Limited.

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