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Den Deming's Texas Instruments Incorporated Trade

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Dan Deming, a managing director of KKM Financial, spoke with Julie Hyman on Bloomberg Markets about Texas Instruments Incorporated (NASDAQ: TXN).

He likes the stock because it has outperformed its peers in a declining market and he believes that it is going to continue to outperform, because it traded higher after Goldman Sachs downgraded it a week ago. He also thinks that the company has a very solid balance sheet and he is encouraged by its buyback program.

Deming wants to buy the July 52.50/57.50 call spread for $1.70 to make a bullish bet. The trade breaks even at $54.20 or almost 7 percent higher and it can maximally make $3.30. He thinks that Texas Instruments could break out above its 200-day moving average, but it is going to take a couple of months before that happens, explained Deming.

 

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Posted-In: Bloomberg Markets CNBC Dan Deming KKM FinancialMedia