Buy Texas Instruments (TXN) ahead of earnings
I'm buying 17.5 strike NOV call options for Texas Instruments. earnings expectations are in the dumps, analysts expect at best a meet on 44 cent target, and expect big guide down. Expectations are in the dumps, any sort of good news will pop the stock. With a P/E of <9, tons of cash, no debt, and a solid dividend, this company is way too cheap. Any sort of good news will launch the stock. Implied volatility is also low on TXN. the 17.5 are in the money by 30 cents calls and are going for $1.35 a pop, while the $20 strike Nov calls are going for 45 cents. Should be a triple on the 20's and double or so on the 17.5's if earnings come in well today.