Texas Instruments (TXN) loses 17 cents to $33.15 and an Apr 32 – 33 call spread trades on the chipmaker for 60 cents, 7000X on ISE. Data indicate a customer bought the spread, to open, and is probably looking for the stock to hold above $33 through the April expiration, which is in 53 days. The stock has been trading in a narrow range over the past few weeks, but is up 13.9 percent year-to-date. Earnings were reported on 1/23 and probably won’t come into play again until after the Apr expiration. However, the company presents at a Morgan Stanley conference tomorrow and will offer a mid-quarter update on Mar 8.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.