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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
Jul 3, 2024 7:43 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 15 uncommon options trades for Taiwan Semiconductor.

This isn't normal.

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

Out of all of the special options we uncovered, 4 are puts, for a total amount of $1,247,940, and 11 are calls, for a total amount of $589,200.

What's The Price Target?

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $120.0 and $200.0 for Taiwan Semiconductor, spanning the last three months.

Analyzing Volume & Open Interest

Looking at the volume and open interest is a powerful move while trading options. 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 trades within a strike price range from $120.0 to $200.0 in the last 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 PUT TRADE NEUTRAL 12/20/24 $15.35 $15.15 $15.25 $175.00 $957.7K 1.0K 2
TSM PUT TRADE BEARISH 12/20/24 $7.45 $7.2 $7.45 $155.00 $223.5K 780 0
TSM CALL TRADE NEUTRAL 08/16/24 $61.4 $60.4 $60.91 $120.00 $152.2K 3.5K 0
TSM CALL TRADE BEARISH 08/16/24 $16.4 $16.35 $16.35 $170.00 $98.1K 10.9K 60
TSM CALL TRADE BULLISH 07/19/24 $1.6 $1.56 $1.6 $200.00 $72.8K 9.4K 1.8K

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.

In light of the recent options history for Taiwan Semiconductor, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Present Market Standing of Taiwan Semiconductor

Currently trading with a volume of 3,873,602, the TSM's price is up by 1.3%, now at $177.98.

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

Anticipated earnings release is in 15 days.

Professional Analyst Ratings for Taiwan Semiconductor

Over the past month, 3 industry analysts have shared their insights on this stock, proposing an average target price of $190.0.

Consistent in their evaluation, an analyst from Susquehanna keeps a Positive rating on Taiwan Semiconductor with a target price of $200.

An analyst from Bernstein persists with their Outperform rating on Taiwan Semiconductor, maintaining a target price of $200.

Consistent in their evaluation, an analyst from Barclays keeps a Overweight rating on Taiwan Semiconductor with a target price of $170.

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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