How Call Traders Doubled Their Money on This Chip Stock

At the time of our recommendation, ON boasted plenty of technical support

Jake Scott

Deputy Editor

Jul 5, 2023 at 1:11 PM

Last week, Schaeffer's Weekend Trader subscribers doubled their money with our ON Semiconductor Corp (NASDAQ:ON) July 75 call. Below, we'll dive into the telling points for this bearish bet on the programming giant.

When the recommendation was made on Sunday, May 7, ON Semiconductor stock was pulling back to a downtrend that was home to breakouts in February, March, and April. The equity was also staging a bull flag breakout on the weekly chart.

Further, ON was holding its 2022 lows after a brief retest of its 200-day moving average, and just broke above its 2023 61.8% Fibonacci retracement level. Adding to this bullish technical set up, the stock was pushing back above an earnings candle, breaking back above all significant put levels, and entering a favorable seasonal period into summer.

From the week ending May 12 to June 30, ON Semiconductor stock turned in seven weekly wins in eight, and it's now added more than 22% over the last three months. We closed the position on June 30, allowing subscribers to collect the 100% target profit.

ON Chart July 52023

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