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TXN Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 65/100
Texas Instruments Incorporated (Technology) · $263.43 ·
Analysis generated Sep 16, 2026 ·
Data as of market close Sep 16
Quick Take
TXN is trading at $263.43 with RSI at 49 (neutral territory). Options IV is at 40% — 42% below its 30-day average of 69%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
49
IV Today
39.8%
IV vs 30d Avg
-42%
MACD
bullish
ADX
22
MFI
62
The Setup
TXN Covered Call
LONG STOCK
100 shares @ $263.43
SHORT CALL
$285 Nov '26 · $11.03/sh
Net Cost
$25,240
Max Profit
+$3,260
Break-even
$252.40
Projected P&L at Target
+$3,260
(12.9%)
P&L at Expiry
P&L Scenarios
What happens at different TXN prices by expiry:
| TXN Price | Today | Oct 7 | Oct 29 | Nov 20 (exp) |
|---|---|---|---|---|
| $211 (-20%) | -$4,250 | -$4,192 | -$4,167 | -$4,166 |
| $224 (-15%) | -$3,039 | -$2,927 | -$2,857 | -$2,848 |
| $237 (-10%) | -$1,910 | -$1,727 | -$1,572 | -$1,531 |
| $250 (-5%) | -$890 | -$630 | -$354 | -$214 |
| $258 (-2%) | -$339 | -$37 | +$317 | +$576 |
| $263 (0%) ← now | +$0 | +$328 | +$731 | +$1,103 |
| $269 (+2%) | +$317 | +$667 | +$1,112 | +$1,630 |
| $277 (+5%) | +$750 | +$1,123 | +$1,616 | +$2,420 |
| $285 (+8%) ← target | +$1,153 | +$1,541 | +$2,059 | +$3,260 |
| $290 (+10%) | +$1,357 | +$1,748 | +$2,267 | +$3,260 |
| $303 (+15%) | +$1,834 | +$2,212 | +$2,695 | +$3,260 |
| $316 (+20%) | +$2,195 | +$2,541 | +$2,945 | +$3,260 |
Why This Strategy, Why Now
- RSI at 49
- IV -42% 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.