Trade Alert – (TNX) May 20, 2025 – BUY

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.

 

Tech Alert – Texas Instruments Incorporated (TXN) – BUY

Buy Texas Instruments Incorporated (TXN) June 2025 $170-$175 in-the-money vertical BULL CALL spread at $4.30

 

Opening Trade

5-20-2025

expiration date: June 20, 2025

Portfolio weighting: 10%

Number of Contracts = 23 contracts

I like TXN in the next 31-day time horizon. I am willing to execute a deep in the money call spread even though we have had a V-shaped rally.

This is a very conservative trade, and now is not the time to bet the ranch. Don’t pay more than $4.40.

Here are the specific trades you need to execute this position:

Buy to Open 23 June 2025 (TXN) $170 calls at……..…$20.40

Sell to short 23 June 2025 (TXN) $175 calls at………….$16.10

Net Cost:……………………..…….………..……………………….$4.30

Potential Profit: $5 – $4.30 = $.70

(23 X 100 X $.70) = $1,610 or 16.28% in 31 days

 

 

 

If you are uncertain about how to execute a bear put options spread, please watch my training video by clicking here.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep-in-the-money spread trades can be enormous.

Don’t execute the legs individually, or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.