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Smart Money Is Betting Big In TSM Options
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Smart Money Is Betting Big In TSM Options
Jul 26, 2024 7:23 AM

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 17 trades.

If we consider the specifics of each trade, it is accurate to state that 52% of the investors opened trades with bullish expectations and 47% with bearish.

From the overall spotted trades, 2 are puts, for a total amount of $87,556 and 15, calls, for a total amount of $2,102,165.

Predicted Price Range

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $90.0 to $200.0 for Taiwan Semiconductor over the recent 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 $90.0 to $200.0 in the last 30 days.

Taiwan Semiconductor Option Activity Analysis: Last 30 Days

Noteworthy Options Activity:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
TSM CALL TRADE BULLISH 01/17/25 $33.95 $33.5 $33.8 $140.00 $337.9K 2.9K 102
TSM CALL TRADE BEARISH 08/16/24 $6.75 $6.6 $6.6 $165.00 $330.0K 15.8K 558
TSM CALL TRADE BEARISH 08/16/24 $6.8 $6.6 $6.6 $165.00 $330.0K 15.8K 558
TSM CALL SWEEP BEARISH 08/16/24 $6.1 $6.0 $6.0 $165.00 $300.0K 15.8K 2.0K
TSM CALL SWEEP BULLISH 08/16/24 $5.7 $5.6 $5.64 $165.00 $282.7K 15.8K 3.6K

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.

After a thorough review of the options trading surrounding Taiwan Semiconductor, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Present Market Standing of Taiwan Semiconductor

Trading volume stands at 2,163,771, with TSM's price up by 1.33%, positioned at $162.41.

RSI indicators show the stock to be is currently neutral between overbought and oversold.

Earnings announcement expected in 83 days.

What Analysts Are Saying About Taiwan Semiconductor

3 market experts have recently issued ratings for this stock, with a consensus target price of $223.33333333333334.

Consistent in their evaluation, an analyst from Susquehanna keeps a Positive rating on Taiwan Semiconductor with a target price of $250.

An analyst from Needham persists with their Buy rating on Taiwan Semiconductor, maintaining a target price of $210.

An analyst from Needham downgraded its action to Buy with a price target of $210.

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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