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Market Whales and Their Recent Bets on TSM Options
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Market Whales and Their Recent Bets on TSM Options
May 16, 2024 7:37 AM

Investors with a lot of money to spend have taken a bullish stance on Taiwan Semiconductor .

And retail traders should know.

We noticed this today when the positions showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with TSM, it often means somebody knows something is about to happen.

Today, Benzinga's options scanner spotted 21 options trades for Taiwan Semiconductor.

This isn't normal.

The overall sentiment of these big-money traders is split between 47% bullish and 38%, bearish.

Out of all of the options we uncovered, there was 1 put, for a total amount of $27,000, and 20, calls, for a total amount of $1,269,508.

Expected Price Movements

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $100.0 and $165.0 for Taiwan Semiconductor, spanning the last three months.

Volume & Open Interest Development

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

This data can help you track the liquidity and interest for Taiwan Semiconductor's options for a given strike price.

Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Taiwan Semiconductor's whale activity within a strike price range from $100.0 to $165.0 in the last 30 days.

Taiwan Semiconductor Option Activity Analysis: Last 30 Days

Largest Options Trades Observed:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
TSM CALL TRADE BEARISH 09/20/24 $29.9 $28.6 $28.99 $130.00 $165.2K 7.5K 60
TSM CALL TRADE BULLISH 05/17/24 $14.75 $14.4 $14.75 $140.00 $147.5K 17.2K 113
TSM CALL TRADE BEARISH 06/21/24 $5.85 $5.7 $5.7 $155.00 $142.5K 15.9K 473
TSM CALL SWEEP NEUTRAL 07/19/24 $9.3 $8.75 $8.98 $155.00 $89.7K 10.1K 117
TSM CALL SWEEP BULLISH 06/21/24 $16.0 $15.8 $16.0 $140.00 $80.0K 23.2K 55

About Taiwan Semiconductor

Taiwan Semiconductor Manufacturing Co. ( TSM ) is the world's largest dedicated chip foundry, with almost 60% market share. TSMC was founded in 1987 as a joint venture of Philips, the government of Taiwan, and private investors. It went public as an ADR in the U.S. in 1997. TSMC's scale and high-quality technology allow the firm to generate solid operating margins, even in the highly competitive foundry business. Furthermore, the shift to the fabless business model has created tailwinds for TSMC. The foundry leader has an illustrious customer base, including Apple, AMD, and Nvidia, that looks to apply cutting-edge process technologies to its semiconductor designs. TSMC employs more than 73,000 people.

Taiwan Semiconductor's Current Market Status

Trading volume stands at 1,965,632, with TSM's price down by -0.73%, positioned at $154.45.

RSI indicators show the stock to be may be overbought.

Earnings announcement expected in 63 days.

What The Experts Say On Taiwan Semiconductor

2 market experts have recently issued ratings for this stock, with a consensus target price of $159.0.

Reflecting concerns, an analyst from Needham lowers its rating to Buy with a new price target of $168.

An analyst from Barclays persists with their Overweight rating on Taiwan Semiconductor, maintaining a target price of $150.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for Taiwan Semiconductor, Benzinga Pro gives you real-time options trades alerts.

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