But if the chart is any indication, that move could result in a plunge to multimonth lows. "The technical setup appears to be showing the potential for a massive double top," said Nathan. Technicians often recognize this pattern as the end of a bull run. "The stock is once again testing the uptrend since its parabolic move that started in February."
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And with sky-high returns on the year comes equally high options prices in the semiconductor. "This is a stock where the options market is going crazy," said Nathan, a CNBC contributor. "Options prices are already at 2015 highs and are likely to go higher," he added. "It's tough to make a directional bet on Ambarella using options here."
Wall Street, on the other hand, appears to see Ambarella as fairly priced at current levels. Of the 12 analysts surveyed by FactSet, the average price target is $109 with a rating of overweight.