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A Closer Look at Taiwan Semiconductor's Options Market Dynamics
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A Closer Look at Taiwan Semiconductor's Options Market Dynamics
Oct 10, 2024 10:09 PM

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

Looking at options history for Taiwan Semiconductor we detected 20 trades.

If we consider the specifics of each trade, it is accurate to state that 45% of the investors opened trades with bullish expectations and 40% with bearish.

From the overall spotted trades, 8 are puts, for a total amount of $495,055 and 12, calls, for a total amount of $2,416,160.

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 $130.0 and $200.0 for Taiwan Semiconductor, spanning the last three months.

Analyzing Volume & Open Interest

In terms of liquidity and interest, the mean open interest for Taiwan Semiconductor options trades today is 2544.75 with a total volume of 5,423.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Taiwan Semiconductor's big money trades within a strike price range of $130.0 to $200.0 over the last 30 days.

Taiwan Semiconductor Option Activity Analysis: Last 30 Days

Significant Options Trades Detected:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
TSM CALL SWEEP BULLISH 06/18/26 $73.9 $72.45 $73.9 $130.00 $1.3M 406 300
TSM CALL SWEEP BEARISH 10/11/24 $2.19 $2.05 $2.05 $185.00 $411.8K 5.2K 2.4K
TSM PUT TRADE BEARISH 10/18/24 $5.85 $5.7 $5.85 $185.00 $134.5K 624 242
TSM CALL SWEEP BEARISH 11/15/24 $7.6 $7.45 $7.45 $195.00 $128.9K 3.5K 265
TSM CALL SWEEP NEUTRAL 01/17/25 $21.85 $21.65 $21.76 $175.00 $108.7K 7.6K 53

About Taiwan Semiconductor

Taiwan Semiconductor Manufacturing Co. ( TSM ) is the world's largest dedicated chip foundry, with over 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

Currently trading with a volume of 769,493, the TSM's price is up by 0.75%, now at $187.45.

RSI readings suggest the stock is currently may be approaching overbought.

Anticipated earnings release is in 12 days.

Unusual Options Activity Detected: Smart Money on the Move

Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Taiwan Semiconductor options trades with real-time alerts from Benzinga Pro.

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