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November 12, 2013  Tue 10:09 AM CT

TXN: SEE CHART GET CHAIN FIND STRATEGIES
A large trader is looking for a big move up or down in Texas Instruments.

optionMONSTER's Depth Charge system shows that 10,000 April 42 puts were bought for the ask price of $2.49. This is clearly a new position, as the previous open interest at that strike was just 237 contracts.

Just afterward, 510,000 shares of TXN were purchased for $41.85. Given the that the delta of the puts was -0.51, the combination of stock and options creates an overall position that is looking for a sharp move in either direction and/or for the actual volatility to be greater than that implied by the option price. (See our Education section)

TXN is up fractionally to $41.92 tihs morning. The chip maker has been trading around the $42 level for the last couple of weeks, the its best level since early 2001. Shares have been trending higher all year, with a 52-week low just above $28 last November.
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Both break outs and a break downs need to have a couple things happen before it is considered a confirmed break out or break down by technical definition!  The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

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