Marvell Technology (MRVL) stock is a top-rated growth stock with a low dividend yield of 0.26%. An alternative strategy is to sell a put option with a strike price of $85, generating a 38.7% annualized “dividend” from the option premium. However, risks include potential losses if the stock price falls below $85.

Selling the put option on MRVL provides exposure equivalent to owning 37 shares of the stock, with a 63% chance of expiring worthless. To reduce risk, one can turn the trade into a spread by buying a $75-strike put, converting it into a bull put spread and cutting potential losses.

Marvell Technology is a designer and marketer of integrated circuits based on ARM designs, serving enterprise and consumer customers in various markets. The company has a strong analyst rating, with 24 Strong Buy and 2 Moderate Buy recommendations out of 35 analysts covering MRVL. Implied volatility is currently at 53.42%.

Options trading involves risks, and investors can lose their entire investment. This article serves for educational purposes only, and readers should conduct their own research and consult with a financial advisor before making any investment decisions.

Read more at Barchart: Creating a 39% “Dividend” on MRVL Stock Using Options