• support@madhedgefundtrader.com
  • Member Login
Mad Hedge Fund Trader
  • Home
  • About
  • Store
  • Luncheons
  • Testimonials
  • Contact Us
  • Click to open the search input field Click to open the search input field Search
  • Menu Menu

Trade Alert - (TXN) February 1, 2022 - BUY

Tech Alert

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.


Alert

 

Tech Alert - Texas Instruments Incorporated (TXN) – BUY

BUY Texas Instruments Incorporated (TXN) February 2022 $160 - $165 in-the-money vertical BULL CALL spread at $4.30

Opening Trade

2-1-2022

expiration date: February 18, 2022

Portfolio weighting: 10%

Number of Contracts = 23 contracts

The Semiconductor ETF (SMH) has had a nice bounce and I believe it’s time to get into the strongest semi manufacturing names in the semi business like Applied Materials (AMAT) and Texas Instruments (TXN).

These companies are really the gold standard of chip manufacturing services and highly profitable, at a time when every tech company is clamoring for more chips including China, and I will hide out in strong balance sheets until the trading environment becomes more favorable to riskier companies.

Although I expect this market selloff to continue for weeks, if not months, the biggest declines are behind us. When markets bottom out, the big money will pour back into the best quality names, especially TXN

I am therefore buying the Texas Instruments (TXN) February 2022 $160-$165 in-the-money vertical Bull Call spread

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

Buy 23 February 2022 (TXN) $160 calls at………….………$18.80

Sell short 23 February 2022 (TXN) $165 calls at………….$14.50

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

Potential Profit: $5 - $4.30 = $.70

(23 X 100 X $.70) = $1,610 or 16.28% in 17 days

 

If you are uncertain on how to execute an 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.

Share this entry
  • Share on Facebook
  • Share on X
  • Share on WhatsApp
  • Share on Pinterest
  • Share on LinkedIn
  • Share by Mail
https://www.madhedgefundtrader.com/wp-content/uploads/2016/02/Alert-e1457452190575.jpg 135 150 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2022-02-01 11:37:022022-02-01 12:48:03Trade Alert - (TXN) February 1, 2022 - BUY

tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Mad Hedge Fund Trader (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade. 

Legal Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.

Copyright © 2025. Mad Hedge Fund Trader. All Rights Reserved. support@madhedgefundtrader.com
  • Privacy Policy
  • Disclaimer
  • FAQ
Link to: February 1, 2022 Link to: February 1, 2022 February 1, 2022 Link to: Quote of the Day - February 1, 2022 Link to: Quote of the Day - February 1, 2022 Quote of the Day - February 1, 2022
Scroll to top