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Why TXN Is an Excellent Covered Call Candidate Right Now Strong · 85/100
Texas Instruments Incorporated (Technology) · $214.73 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
Quick Take
TXN is trading at $214.73 with RSI at 66 (neutral territory). Options IV is at 37% — 43% below its 30-day average of 64%. While the stock is extended, IV is below average which means premiums aren't as rich. The trade still works but yields less income than usual.
Technical Signals
RSI (14)
66
IV Today
36.7%
IV vs 30d Avg
-43%
MACD
bullish
ADX
24
MFI
75
The Setup
TXN Covered Call
LONG STOCK
100 shares @ $214.73
SHORT CALL
$230 Jun '26 · $7.55/sh
Net Cost
$20,718
Max Profit
+$2,282
Break-even
$207.18
Projected P&L at Target
+$2,282
(11.0%)
P&L at Expiry
P&L Scenarios
What happens at different TXN prices by expiry:
| TXN Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $172 (-20%) | -$3,587 | -$3,553 | -$3,541 | -$3,540 |
| $183 (-15%) | -$2,585 | -$2,512 | -$2,471 | -$2,466 |
| $193 (-10%) | -$1,650 | -$1,520 | -$1,418 | -$1,392 |
| $204 (-5%) | -$809 | -$615 | -$420 | -$319 |
| $210 (-2%) | -$358 | -$128 | +$128 | +$326 |
| $215 (0%) ← now | -$82 | +$168 | +$462 | +$755 |
| $219 (+2%) | +$172 | +$440 | +$766 | +$1,184 |
| $225 (+5%) | +$516 | +$802 | +$1,162 | +$1,829 |
| $230 (+7%) ← target | +$730 | +$1,023 | +$1,394 | +$2,282 |
| $236 (+10%) | +$987 | +$1,281 | +$1,650 | +$2,282 |
| $247 (+15%) | +$1,343 | +$1,620 | +$1,946 | +$2,282 |
| $258 (+20%) | +$1,599 | +$1,844 | +$2,101 | +$2,282 |
Why This Strategy, Why Now
- RSI at 66 — extended, ideal for selling calls
- IV -43% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 24 — moderate trend
- No squeeze — no imminent breakout
- MFI at 75 — money flow confirms overbought
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.