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Chip Stock Falls as China Launches Investigations
Schaeffers Investment Researchยท 2025-09-15 16:34
Core Viewpoint - Texas Instruments Inc (NASDAQ:TXN) is experiencing a significant decline in stock price due to recent investigations launched by China into U.S. semiconductor imports, marking its lowest trading levels since May [1][2]. Group 1: Stock Performance - TXN is down 3.2% at $176.80, reflecting a broader trend of three consecutive weekly losses and a year-to-date decline of 5.6% [1][2]. - The stock is currently in "oversold" territory, indicated by a 14-day relative strength index of 3.6 [2]. Group 2: Options Market Activity - There has been a notable increase in put options trading, with 12,000 puts exchanged today, which is double the average intraday volume, compared to 6,222 calls [3]. - The most popular put contract is the November 190 put, followed by the September 180 put [3]. - Options are currently reasonably priced, with TXN's Schaeffer's Volatility Index (SVI) at 28%, ranking in the low 8th percentile of its annual range, indicating low volatility expectations among traders [3].