TXN Cash-Secured Put Strategy
TXN (Texas Instruments Incorporated), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide. It operates in two segments, Analog and Embedded Processing. The Analog segment offers power products to manage power requirements in various levels using battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage supervisors, voltage references, and lighting products. This segment also provides signal chain products that sense, condition, and measure signals to allow information to be transferred or converted for further processing and control for use in end markets, including amplifiers, data converters, interface products, motor drives, clocks, and sensing products. The Embedded Processing segment offers microcontrollers that are used in electronic equipment; digital signal processors for mathematical computations; and applications processors for specific computing activity. This segment offers products for use in various markets, such as industrial, automotive, personal electronics, communications equipment, enterprise systems, and calculators and other.
TXN (Texas Instruments Incorporated) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $278.80B, a trailing P/E of 51.88, a beta of 1.30 versus the broader market, a 52-week range of 152.73-309.32, average daily share volume of 7.1M, a public-listing history dating back to 1972, approximately 34K full-time employees. These structural characteristics shape how TXN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.30 places TXN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 51.88 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. TXN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a cash-secured put on TXN?
A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike.
Current TXN snapshot
As of May 15, 2026, spot at $303.52, ATM IV 43.34%, IV rank 71.45%, expected move 12.42%. The cash-secured put on TXN below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.
Why this cash-secured put structure on TXN specifically: TXN IV at 43.34% is rich versus its 1-year range, which favors premium-selling structures like a TXN cash-secured put, with a market-implied 1-standard-deviation move of approximately 12.42% (roughly $37.71 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TXN expiries trade a higher absolute premium for lower per-day decay. Position sizing on TXN should anchor to the underlying notional of $303.52 per share and to the trader's directional view on TXN stock.
TXN cash-secured put setup
The TXN cash-secured put below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With TXN near $303.52, the first option leg uses a $290.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TXN chain at a 28-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 TXN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $290.00 | $7.98 |
TXN cash-secured put risk and reward
- Net Premium / Debit
- +$797.50
- Max Profit (per contract)
- $797.50
- Max Loss (per contract)
- -$28,201.50
- Breakeven(s)
- $282.03
- Risk / Reward Ratio
- 0.028
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
TXN cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on TXN. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$28,201.50 |
| $67.12 | -77.9% | -$21,490.62 |
| $134.23 | -55.8% | -$14,779.73 |
| $201.34 | -33.7% | -$8,068.85 |
| $268.45 | -11.6% | -$1,357.96 |
| $335.55 | +10.6% | +$797.50 |
| $402.66 | +32.7% | +$797.50 |
| $469.77 | +54.8% | +$797.50 |
| $536.88 | +76.9% | +$797.50 |
| $603.99 | +99.0% | +$797.50 |
When traders use cash-secured put on TXN
Cash-secured puts on TXN earn premium while a trader waits to acquire TXN stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning TXN.
TXN thesis for this cash-secured put
The market-implied 1-standard-deviation range for TXN extends from approximately $265.81 on the downside to $341.23 on the upside. A TXN cash-secured put lets a trader earn premium while waiting to acquire TXN at the strike price; the strategy is most attractive when the trader is comfortable holding the underlying at that level and IV is rich enough to compensate for the assignment risk. Current TXN IV rank near 71.45% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on TXN at 43.34%. As a Technology name, TXN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TXN-specific events.
TXN cash-secured put positions are structurally neutral to slightly bullish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. TXN positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TXN alongside the broader basket even when TXN-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on TXN carry tail risk when realized volatility exceeds the implied move; review historical TXN earnings reactions and macro stress periods before sizing. Always rebuild the position from current TXN chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on TXN?
- A cash-secured put on TXN is the cash-secured put strategy applied to TXN (stock). The strategy is structurally neutral to slightly bullish: A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike. With TXN stock trading near $303.52, the strikes shown on this page are snapped to the nearest listed TXN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TXN cash-secured put max profit and max loss calculated?
- Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium. For the TXN cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 43.34%), the computed maximum profit is $797.50 per contract and the computed maximum loss is -$28,201.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TXN cash-secured put?
- The breakeven for the TXN cash-secured put priced on this page is roughly $282.03 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current TXN market-implied 1-standard-deviation expected move is approximately 12.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a cash-secured put on TXN?
- Cash-secured puts on TXN earn premium while a trader waits to acquire TXN stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning TXN.
- How does current TXN implied volatility affect this cash-secured put?
- TXN ATM IV is at 43.34% with IV rank near 71.45%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.