← Best Covered Calls
/ TXN
TXN Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 73/100
Texas Instruments Incorporated (Technology) · $300.84 ·
Analysis generated Oct 30, 2026 ·
Data as of market close Oct 30
Quick Take
TXN is trading at $300.84 with RSI at 58 (neutral territory). Options IV is at 38% — 48% below its 30-day average of 74%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
58
IV Today
38.4%
IV vs 30d Avg
-48%
MACD
bullish
ADX
22
MFI
54
The Setup
TXN Covered Call
LONG STOCK
100 shares @ $300.84
SHORT CALL
$325 Dec '26 · $8.15/sh
Net Cost
$29,269
Max Profit
+$3,231
Break-even
$292.69
Projected P&L at Target
+$3,231
(11.0%)
P&L at Expiry
P&L Scenarios
What happens at different TXN prices by expiry:
| TXN Price | Today | Nov 16 | Dec 2 | Dec 18 (exp) |
|---|---|---|---|---|
| $241 (-20%) | -$5,244 | -$5,212 | -$5,202 | -$5,202 |
| $256 (-15%) | -$3,815 | -$3,737 | -$3,701 | -$3,698 |
| $271 (-10%) | -$2,465 | -$2,316 | -$2,212 | -$2,193 |
| $286 (-5%) | -$1,236 | -$1,001 | -$778 | -$689 |
| $295 (-2%) | -$574 | -$286 | +$23 | +$213 |
| $301 (0%) ← now | -$166 | +$153 | +$518 | +$815 |
| $307 (+2%) | +$212 | +$558 | +$974 | +$1,417 |
| $316 (+5%) | +$723 | +$1,098 | +$1,572 | +$2,319 |
| $325 (+8%) ← target | +$1,171 | +$1,562 | +$2,063 | +$3,231 |
| $331 (+10%) | +$1,426 | +$1,819 | +$2,319 | +$3,231 |
| $346 (+15%) | +$1,956 | +$2,327 | +$2,772 | +$3,231 |
| $361 (+20%) | +$2,336 | +$2,661 | +$3,005 | +$3,231 |
Why This Strategy, Why Now
- RSI at 58 — neutral-bullish
- IV -48% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 22 — moderate trend
- No squeeze — no imminent breakout
Key Risks
TXN has bullish momentum (MACD). If a positive catalyst emerges (earnings beat, product launch), the stock could gap past your strike. Consider rolling the call up if TXN approaches the strike before expiry.