A method of forming a transistor device includes forming a patterned gate structure over a semiconductor substrate; forming a spacer layer over the semiconductor substrate and patterned gate structure; removing horizontally disposed portions of the spacer layer so as to form a vertical sidewall spacer adjacent the patterned gate structure; and forming a raised source/drain (RSD) structure over the semiconductor substrate and adjacent the vertical sidewall spacer, wherein the RSD structure has a substantially vertical sidewall profile so as to abut the vertical sidewall spacer and produce one of a compressive and a tensile strain on a channel region of the semiconductor substrate below the patterned gate structure.