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Taiwan Semiconductor's Options Frenzy: What You Need to Know
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Taiwan Semiconductor's Options Frenzy: What You Need to Know
Apr 1, 2024 12:04 PM

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 74 uncommon options trades for Taiwan Semiconductor.

This isn't normal.

The overall sentiment of these big-money traders is split between 48% bullish and 51%, bearish.

Out of all of the special options we uncovered, 21 are puts, for a total amount of $1,163,202, and 53 are calls, for a total amount of $3,345,849.

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 $90.0 and $200.0 for Taiwan Semiconductor, spanning the last three months.

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 $90.0 to $200.0 over the preceding 30 days.

Taiwan Semiconductor 30-Day Option Volume & Interest Snapshot

Biggest Options Spotted:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
TSM CALL SWEEP NEUTRAL 05/17/24 $9.0 $8.85 $8.93 $140.00 $669.7K 19.6K 2.0K
TSM PUT TRADE BULLISH 08/16/24 $4.85 $4.75 $4.75 $125.00 $142.5K 2.9K 332
TSM PUT SWEEP BEARISH 04/19/24 $1.67 $1.66 $1.67 $130.00 $140.6K 11.1K 1.0K
TSM CALL SWEEP BULLISH 05/17/24 $9.45 $9.35 $9.45 $140.00 $135.1K 19.6K 1.0K
TSM CALL SWEEP BULLISH 05/17/24 $9.45 $9.4 $9.45 $140.00 $126.6K 19.6K 1.1K

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

With a trading volume of 10,605,957, the price of TSM is up by 3.23%, reaching $140.44.

Current RSI values indicate that the stock is may be approaching overbought.

Next earnings report is scheduled for 17 days from now.

Professional Analyst Ratings for Taiwan Semiconductor

In the last month, 1 experts released ratings on this stock with an average target price of $150.0.

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

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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