📢 Trade Management Update – Texas Instruments ($TXN)
Monday 8/18 Managing ($TXN) Bull Put Credit Spread
Anytime one of my open trades captures more than 50% of the premium, I put out a management note. That doesn’t automatically mean I’m closing — it just means we’ve hit the profit zone where risk/reward shifts, and it’s worth reviewing the setup. Some traders prefer to lock in early, while others are fine letting it ride. Both approaches can be valid, depending on how you manage risk.
🖥 Texas Instruments ($TXN) – Sep 19th 185/175 Put Credit ($TXN) – Sep 19th 185/175 Put Credit Spread
Current P/L: +$490.50 (+51.58%)
Max Reward: $951.00
DTE: 32 days
📊 Chart Breakdown
Price Action: TXN trading at $193.83, consolidating just under the 50-day SMA ($200.59). The rebound is intact, but the 50-day remains a big test.
Moving Averages: Price above 10- and 200-day SMAs, showing short-term momentum, but 50-day still overhead.
RSI: 50 — mid-range, with room higher before overbought.
MACD: Bearish pressure fading, flattening out, hinting at possible turn.
Stochastics: At 95, fully overbought — short-term caution flag.
⚖️ Trade Evaluation
Over 50% of max profit already booked with more than a month left.
Short strike ($185) is below market, giving a decent cushion.
Still, 32 days of exposure means risk remains if TXN fails at the 50-day and rolls over.
✅ Management Call
If you close now: Lock in +51% and free up capital. Nothing wrong with that.
If you hold (my choice): I’m staying in, as $185 support remains intact. But I’ll watch the 200-day SMA (~$190) as my line in the sand — if TXN breaks below it, I’ll consider cutting early to protect gains.
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*Disclaimer: These trades reflect my own strategy and opinion, not financial advice.
Excellent set-up!