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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
Feb 21, 2025 9:34 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 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 50 uncommon options trades for Taiwan Semiconductor.

This isn't normal.

The overall sentiment of these big-money traders is split between 62% bullish and 28%, bearish.

Out of all of the special options we uncovered, 20 are puts, for a total amount of $1,038,471, and 30 are calls, for a total amount of $1,467,846.

Projected Price Targets

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $80.0 to $260.0 for Taiwan Semiconductor during the past quarter.

Volume & Open Interest Trends

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Taiwan Semiconductor's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Taiwan Semiconductor's substantial trades, within a strike price spectrum from $80.0 to $260.0 over the preceding 30 days.

Taiwan Semiconductor Option Activity Analysis: Last 30 Days

Biggest Options Spotted:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
TSM CALL TRADE BEARISH 01/15/27 $119.15 $118.0 $118.0 $90.00 $165.2K 143 14
TSM CALL TRADE BEARISH 03/21/25 $16.25 $15.4 $15.6 $190.00 $124.8K 2.0K 0
TSM PUT TRADE BEARISH 04/04/25 $39.7 $39.4 $39.7 $240.00 $119.1K 0 0
TSM PUT SWEEP BEARISH 03/20/26 $5.3 $5.25 $5.3 $130.00 $103.3K 38 201
TSM PUT SWEEP NEUTRAL 06/20/25 $10.8 $10.7 $10.74 $190.00 $100.9K 3.5K 32

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.

Taiwan Semiconductor's Current Market Status

Trading volume stands at 4,342,139, with TSM's price down by -0.03%, positioned at $200.04.

RSI indicators show the stock to be may be approaching oversold.

Earnings announcement expected in 55 days.

Expert Opinions on Taiwan Semiconductor

Over the past month, 1 industry analysts have shared their insights on this stock, proposing an average target price of $225.0.

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.

* Reflecting concerns, an analyst from Needham lowers its rating to Buy with a new price target of $225.

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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