KLA-Tencor - KLAC - close: 46.12 change: +0.56

Stop Loss: 44.95
Target(s): 49.95
Current Gain/Loss: unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
The mid-March sell-off in the semiconductor stocks was pretty harsh but the group seems to have found a bottom, at least short-term. Selling pressure has paused and several of them look poised to bounce. KLAC is actually starting to see a little trend of higher lows.

We're looking for a short-term bounce. KLAC has resistance near $46.50. I am suggesting we open small bullish positions at $46.65. If triggered we'll target a move to $49.90. I'd start the play with a stop at $44.95.

Trigger @ $46.65

Suggested Position: Buy KLAC stock @ $46.65

- or -

Buy the April $45 calls (KLAC1116D45) current ask $2.20

Annotated chart:

Entry on March x at $xx.xx
Earnings Date 04/28/11 (unconfirmed)
Average Daily Volume: 2.5 million
Listed on March 23rd, 2011