Earn 14% On MRVL Stock Now, Or Own It 60% Cheaper Later

Here is a way to collect an attractive income stream on an AI chip powerhouse now, which you keep no matter what, while lining up a chance to buy the stock at a serious discount if it ever stumbles.

After a monster run over the last year, shares of semiconductor designer Marvell Technology (MRVL) now trade around $211, which is still a good 33% off their 52-week high. That kind of setup can leave an investor paralyzed: you’re intrigued by the artificial intelligence story but hesitant to chase the stock at these levels. This is where a specific options trade can offer a strong alternative, paying you a healthy income upfront simply for agreeing to buy the shares at a price well below where they are today.

14% annualized yield at a 60% margin of safety, by selling put options.

• Sell a put option on MRVL expiring 9/17/2027, with a strike price of $85.
• Collect roughly $845 in premium per contract (each contract covers 100 shares).
• That works out to about 8.8% annualized on the $8,500 of cash you set aside to secure the trade.
• Park that cash in a money market or savings account earning roughly 5.0%, and your total yield climbs to about 13.8%.
• And if MRVL falls below $85 at expiration, you buy it at $85, an effective entry near $76.55 a share after the premium, about a 64% discount to today’s $211.02.

Two Ways This Plays Out, Both Pay You

If MRVL stays above $85 through 9/17/2027, the put expires worthless, and you simply keep the full $845 premium. That is about 8.8% annualized on the $8,500 you set aside (9.9% over the 407 days), while that same collateral keeps earning the ~5.0% money-market yield on top, for the ~13.8% total above. You never buy the stock and keep the income, free to do it again.

If MRVL closes below $85, you are assigned and buy 100 shares at $85. The $845 premium you already pocketed lowers your effective cost to about $76.55 a share, roughly a 64% discount to today’s price, though if the stock has fallen further by then you would be holding a paper loss.

So what happens if MRVL really does close below $85, and you are the one buying? Then everything rests on a single question.

Before You Sell That Put, Know What You Are Buying

That income is yours to keep the moment you place the trade, regardless of what the stock does next. But because this strategy could result in you owning the shares, the decision really comes down to one question: how comfortable would you be owning Marvell if you got it at a discount? The bull case is a story of explosive, accelerating growth. Management isn’t just guiding for a good quarter; they’ve laid out a multi-year vision, expecting overall revenue to grow approximately 40% in fiscal 2027 and then accelerate to approximately 45% growth in fiscal 2028. This isn’t a one-trick pony, either. The company’s massive data center business, which grew 46% last year, is projected to see that growth accelerate to approximately 50% this year and 55% next year, powered by booming demand across its portfolio.

The growth drivers are broad. The company’s critical interconnect business, which provides the high-speed plumbing for AI data centers, is now expected to grow more than 70% this year. Meanwhile, its custom silicon business, which designs bespoke chips for the world’s largest cloud players, is on a trajectory to more than double in fiscal 2028. This is the picture of a company at the center of the AI infrastructure buildout, with multiple powerful engines firing at once.

So, what could go wrong? The skepticism, evident in analyst questions on the company’s recent call, centers on execution and concentration. This stunning growth forecast relies heavily on flawlessly ramping a few enormous custom chip programs for a handful of giant customers. Any delay or stumble with one of those key programs could create a significant hole in the forecast. The other major risk is the supply chain. To meet this demand, Marvell needs access to the world’s most advanced and constrained manufacturing capacity. Management is confident, noting it is “aggressively locking in additional capacity” and forecasting “approximately $1 billion in prepayments” to suppliers this fiscal year. While that signals commitment, it also underscores a critical dependency that could become a bottleneck.

This trade doesn’t require you to have a crystal ball on whether Marvell can navigate these risks. Instead, it pays you for taking on that uncertainty with a significant margin of safety. If the bulls are right and the stock continues its ascent, you simply pocket the income. If the bears have a point and execution worries cause the stock to fall, you become an owner at a price that already reflects a healthy dose of concern. The single most important thing to watch is the progress of that custom silicon business. Its ramp is the clearest test of whether Marvell can deliver on its grand ambitions.

Wondering whether another stock offers a better yield, or what this same trade would pay on a name you already like? You can screen the latest cash-secured put yields across the market for yourself. And if it is exposure to semiconductors as a whole you want rather than this one name, a semiconductor ETF like SOXQ covers that single sector. Going broader than any one sector, to a quality-first mix across the whole market, is where the portfolio below comes in.

Before You Commit To Buying More Of One Stock, Know How Much You Already Carry

A put sale is a promise to add to a single name, and the first thing a professional checks before that promise is existing exposure, because concentration is what turns an income trade into an oversized bet. That check is exactly what the Trefis Wealth team provides, with the same rules-based systematic discipline that runs our High Quality Portfolio. Request a free vulnerability audit of your biggest positions.