Fairchild shares rose 0.58 percent on Friday to finish the week at $13.98. The chip maker 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's shares to gain more than 4 percent by expiration in mid-February. Total option volume in the name was 26 times its daily average in the last month.
—By CNBC Contributor Mike Yamamoto
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