Option Investor
New Plays
HAVING TROUBLE PRINTING?
Printer friendly version
New Plays
Long Plays
Short Plays
None TXN

New Long Plays

None today.
 

New Short Plays

Texas Instruments - TXN - close: 30.52 change: -1.36 stop: 32.05

Company Description:
Texas Instruments Incorporated provides innovative DSP and analog technologies to meet our customers' real world signal processing requirements. In addition to Semiconductor, the company includes the Educational & Productivity Solutions business. TI is headquartered in Dallas, Texas, and has manufacturing, design or sales operations in more than 25 countries. (source: company press release or website)

Why We Like It:
TXN recently reported earnings that were inline while revenues were less than expected. Furthermore investors were not happy with TXN's less than optimistic guidance for the next quarter. The stock lost 4.2% on the news with volume surging almost three times the norm. Today's session definitely looks like a bearish reversal and more aggressive traders may want to consider new positions now. We're a little concerned about potential support at the $30.00 level so we're suggesting a trigger to short TXN at $29.90. If triggered our target is the $27.50 level. Once the play is open we'll probably adjust the stop loss toward the $31.50 or $31.00 levels since broken support at $31.00 should act as new resistance. Keep an eye on the SOX semiconductor index, which looks poised to breakdown. FYI: The P&F chart for TXN points to a $17 target.

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/23/06 (confirmed)
Average Daily Volume: 14.8 million
 

Premier Investor New Play Archives