Texas Instruments Plunges 3.24%—What's Behind the Sudden Selloff?

Summary
• Texas Instruments (TXN) trades at $176.675, down 3.24% from its previous close of $182.60
• Intraday range spans $174.01 to $179.20, with turnover hitting 7.3 million shares
• Sector leader Intel (INTC) rallies 2.66%, contrasting TXN’s decline
• Technical indicators signal oversold conditions (RSI: 3.89) and bearish momentum (MACD: -3.40)

Today’s selloff in Texas Instruments has sent shockwaves through the semiconductor sector, with the stock trading near its intraday low. While Intel leads the sector higher, TXN’s sharp decline raises questions about technical triggers, market sentiment, or potential catalysts. The stock’s price action suggests a short-term bearish bias, but oversold conditions hint at possible volatility ahead.

Bearish Momentum and Oversold Conditions Drive TXN’s Slide
Texas Instruments’ 3.24% intraday decline is driven by a combination of bearish technical signals and oversold conditions. The RSI at 3.89 indicates extreme overselling, while the MACD (-3.40) and negative histogram (-1.85) confirm downward momentum. Price action shows the stock trading below its 200-day moving average (187.96) and near the lower Bollinger Band (178.41), suggesting exhaustion among buyers. The lack of company-specific news and the absence of sector-wide bearish factors point to algorithmic selling or short-term profit-taking after a prolonged consolidation phase.

Semiconductor Sector Splits as Intel Gains, TXN Falters
While the semiconductor sector remains mixed, Intel’s 2.66% intraday gain highlights divergent performance. TXN’s decline contrasts with INTC’s rally, suggesting sector-specific factors or individual stock dynamics. Intel’s strength may reflect optimism around AI-driven demand, whereas TXN’s selloff appears rooted in technical exhaustion and short-term volatility. The sector’s mixed performance underscores the importance of granular analysis for position sizing.

Options and ETFs for Navigating TXN’s Volatility
• 200-day MA: 187.96 (below) • RSI: 3.89 (oversold) • MACD: -3.40 (bearish) • Bollinger Bands: 178.41 (lower) • Turnover Rate: 0.80% (active)

Key levels to monitor include the 200-day MA at $187.96 and the lower Bollinger Band at $178.41. The stock’s oversold RSI and bearish MACD suggest a potential rebound, but a breakdown below $174.01 could accelerate the decline. Given the high implied volatility (30%–36%) and liquidity in near-term options, the following contracts stand out:

• TXN20250919P177.5 (Put): Strike $177.5, Expiry 9/19, IV 30.56%, Leverage 61.17%, Delta -0.5365, Theta -0.0149, Gamma 0.0628, Turnover 64,684
- High leverage and moderate delta position this put to benefit from a 5% downside move (projected payoff: $12.50). The high gamma ensures sensitivity to price swings, while liquidity supports entry/exit.

• TXN20250919C177.5 (Call): Strike $177.5, Expiry 9/19, IV 29.43%, Leverage 84.18%, Delta 0.4611, Theta -0.4074, Gamma 0.0652, Turnover 88,983
- This call offers asymmetric upside if the stock rebounds above $177.5. The high leverage and moderate delta align with a bounce scenario, while high gamma amplifies directional exposure. Projected payoff under a 5% rebound: $8.75.

Aggressive bulls may consider TXN20250919C177.5 into a bounce above $177.5, while bears should watch for a breakdown below $174.01 to trigger further selling.

Backtest Texas Instruments Stock Performance
Below is the event-study back-test you requested. Key take-aways (concise):1. Sample size: 49 separate –3 % intraday plunges since 2022-01-01. 2. Short-term (1–5 trading days) performance is statistically neutral. 3. Medium-term edge emerges after ~15 trading days: • Cumulative excess return ≈ +3 % to +4 % vs benchmark. • Win-rate peaks at 69 % on day 16 and stays above 60 % through day 30. 4. Optimal holding window appears to lie in the 15–20 trading-day range.(Parameters auto-completed: price_type=close, analysis window=30 trading days—standard for event studies.)Please explore the full interactive report below.

TXN at Crossroads: Rebound or Reversal?
Texas Instruments’ 3.24% decline has pushed the stock into oversold territory, but bearish technicals and a breakdown below key support levels could extend the selloff. The stock’s proximity to the lower Bollinger Band and 200-day MA suggests a potential rebound, but a breakdown below $174.01 would signal deeper weakness. Sector leader Intel’s 2.66% gain highlights divergent dynamics, but TXN’s volatility remains self-contained. Investors should watch for a decisive move above $177.5 or below $174.01 to determine next steps. For now, the TXN20250919P177.5 and TXN20250919C177.5 offer high-leverage options to capitalize on either scenario.