Bull Charges Into Fairchild Semiconductor

By Mike Yamamoto, managing editor of OptionMonster

NEW YORK -- Bullish activity at a single strike made up all the option volume in Fairchild Semiconductor ( FCS) on Friday.

OptionMonster's tracking systems show that 4,036 February 13 calls were bought in less than two minutes on Friday afternoon, led by a print of 2,559 that went for $1.54. The volume compares with open interest of only 189 contracts at the start of the day, so this is fresh buying.

Fairchild rose 0.58% on Friday to finish the week at $13.98. The chipmaker bounced sharply just below the $12 level on Nov. 16 and hit a three-month high of $14.23 last Wednesday, a session before Citigroup reiterated its buy rating on the name and raised its price target to $20 from $15.

Friday's calls, which lock in the price where the trader can buy the stock, are looking for Fairchild shares to gain more than 4% by expiration in mid-February. Total option volume in the name was 26 times its daily average in the last month.

Yamamoto has no positions in FCS.
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