🎯 $Texas Instruments (TXN) Options Strategy: Bull Call Spread (Debit Spread)

$Texas Instruments(TXN)$

- Underlying: TXN

- View: Cautiously Optimistic (Short-term bullish momentum from breakout to new highs, but with overbought RSI warning of potential consolidation).

- Strategy Type: Bullish Debit Spread / Directional

- Option Contract Portfolio:

- Buy 1 TXN Jun 20, 2026 $310 Call

- Sell 1 TXN Jun 20, 2026 $325 Call

- Max Gain & Loss: Max Gain = $1,500 per spread. Max Loss = Net Debit Paid (~$850).

- Initial Cost/Credit: Net Debit ~$8.50 (estimated from chain data).

- Greek Exposure (Simulated):

- Delta: +0.30 (Moderate positive directional bias).

- Theta: -0.04 (Small negative time decay, typical for a long debit spread).

- Vega: +0.08 (Slightly positive, benefits from a rise in IV, which is currently low at 32.65% and 30.28% percentile).

- Gamma: +0.015 (Moderate sensitivity to price moves near expiration).

- Rho: +0.03 (Minor positive sensitivity to rising rates).

- Rationale: This strategy is optimal for a cautiously bullish view. It capitalizes on further upside towards the $340 analyst target while strictly defining and limiting risk. Buying the $310 call provides directional exposure above the immediate resistance ($309.32). Selling the $325 call reduces the net cost (debit) and sets a clear profit cap, making the trade more capital-efficient. The positive Vega is beneficial as current IV is relatively low (30.28% percentile), offering a potential "IV bump" if volatility increases with the stock's momentum. It balances Delta (direction) with manageable Theta (time decay) cost.

- Time Frame: Short-term to Mid-term (Expiration in ~5 weeks).

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