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January 31, 2013  Thu 2:45 AM CT

FSL: SEE CHART GET CHAIN FIND STRATEGIES
Freescale Semiconductor spiked higher yesterday after reporting strong quarterly numbers, and traders are looking for more gains.

More than 5,000 June 15 calls were purchased in less than a minute yesterday morning, led by two blocks of 2,000 that went for $1.40 and $1.45, optionMONSTER's Heat Seeker system shows. This is fresh buying, as there was no open interest in the strike before the session began.

FSL surged 14.85 percent to $14.23 yesterday on stock volume that was about 7 times higher than average. Freescale, which makes chip technology for remote controls and other wireless systems, beat forecasts on the top and bottom lines in its fourth-quarter report after Tuesday's close. Pacific Crest raised its price target to $15 from $11 while maintaining an "outperform" rating on the name.

Friday's long calls, which lock in the price where traders can buy stock, are looking for FSL to gain more than 15 percent by mid-June. These options could be sold earlier at a profit if premiums rise with any rally before then, but the contracts will expire wortheless if shares don't reach the $15 strike price. (See our Education section)

Total option volume in the name surpassed 10,000 contracts yesterday, 7 times its daily average of 1,462 in the last month. Calls at all strikes outnumbered puts by more than 17 to 1, a reflection of the session's bullish sentiment.
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