FCS Breakout to Continue?

Fairchild Semiconductor International, Inc (FCS) saw some bullish action today as the stock makes new highs. FCS opened today at $15.72 and hit its 52-week high of $16.12 this morning before pulling back to $15.86 where it stands now. Even this slight pullback could be seen as a buying opportunity as the new high was made on volume that has already eclipsed its average daily volume, suggesting the only way to go is up, which is a familiar direction for FCS as it has more than doubled the returns of the S&P YTD, up 18.22%.

Technically, FCS looks very strong. The stock broke through decidedly bearish resistance a couple weeks ago on news of a new product launch that tested well above industry competition and may have set a new standard for energy efficiency modules. After breaking through resistance to the upside, the stock continued its parabolic rally as investors piled on board and didn’t find sellers until today. The forward projection of the Ichimoku cloud is signaling a continued rally after this intraday pullback.


The Trade: Buying the FCS Aug 17 Calls for $.45

Risk: $45 per 1 lot

Targets: Sell 25% at $.55, Sell 25% at $.65, Sell 25% at $.80, Sell 25% at $1.00

Greeks of this Trade:

Delta: Long

Gamma: Long

Theta: Short

Vega: Long