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Taiwan Semiconductor Options Trading: A Deep Dive into Market Sentiment
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Taiwan Semiconductor Options Trading: A Deep Dive into Market Sentiment
Dec 12, 2024 11:06 AM

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

And retail traders should know.

We noticed this today when the trades 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.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 22 uncommon options trades for Taiwan Semiconductor.

This isn't normal.

The overall sentiment of these big-money traders is split between 31% bullish and 40%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $77,490, and 20 are calls, for a total amount of $2,175,956.

Expected Price Movements

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $110.0 to $240.0 for Taiwan Semiconductor over the last 3 months.

Analyzing Volume & Open Interest

In terms of liquidity and interest, the mean open interest for Taiwan Semiconductor options trades today is 9469.69 with a total volume of 9,944.00.

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 $110.0 to $240.0 over the last 30 days.

Taiwan Semiconductor 30-Day Option Volume & Interest Snapshot

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 BULLISH 12/20/24 $23.95 $23.25 $23.83 $170.00 $481.3K 1.5K 512
TSM CALL TRADE NEUTRAL 12/20/24 $24.1 $23.65 $23.85 $170.00 $448.3K 1.5K 209
TSM CALL SWEEP BEARISH 12/20/24 $0.88 $0.85 $0.85 $205.00 $214.7K 2.5K 2.6K
TSM CALL TRADE BULLISH 01/17/25 $84.7 $84.45 $84.7 $110.00 $127.0K 2.1K 18
TSM CALL TRADE BEARISH 01/10/25 $15.05 $14.3 $14.3 $185.00 $114.4K 263 80

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 us 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.

Following our analysis of the options activities associated with Taiwan Semiconductor, we pivot to a closer look at the company's own performance.

Present Market Standing of Taiwan Semiconductor

Currently trading with a volume of 3,992,344, the TSM's price is down by -0.69%, now at $192.65.

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

Anticipated earnings release is in 35 days.

What Analysts Are Saying About Taiwan Semiconductor

1 market experts have recently issued ratings for this stock, with a consensus target price of $240.0.

Turn $1000 into $1270 in just 20 days?

20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access.

* Maintaining their stance, an analyst from Barclays continues to hold a Overweight rating for Taiwan Semiconductor, targeting a price of $240.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Taiwan Semiconductor with Benzinga Pro for real-time alerts.

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