Prices as of 2:49 PM ET, Sep 17. Check the live quote before you send an order.
The put
Skip
Skip the put. It pays a lot because TXN can drop a lot. Wait, or buy shares.
If it goes against you: you buy 100 shares at $255, which after the $1,148 you keep works out to $243.52 a share. Below $243.52 you are down on the trade. From that day the shares take above is the one that applies.
The order, if you sell it anyway
You get$1,148 (limit about $11.48)
If it fallsBuy 100 shares at $255
Cash to hold$25,500
Close earlyBuy back at about $10.33 ($1,033)
Chance you buy the sharesabout 41 in 100
ContractTXN Oct 23 $255 put
ActionSell to open
In your broker app: open the stock → Trade → Options → Sell to open → pick the contract shown here.
Why skip
The put: Oct 23, $255 strike, 36 days out. Pays $1,148. Roughly a 41-in-100 chance you end up buying the shares.
On paper: 46% a year. That number assumes TXN keeps moving like it did the past two years. Take that away and it is -7% a year. That is why we say skip.
Next earnings Oct 27, after this put ends. We never sell a put across a report.
If you already own 100 shares
Income call
For income on TXN you already hold: sell the Oct 23 $300 call and take $288 now. If TXN climbs to $300 by Oct 23, your 100 shares are sold at $300, so only do it if you're happy selling there.
If it climbs past $300 your 100 shares are sold at $300 and you keep the $288. That is the trade working, not a loss.