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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 11, 2024 7:19 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 positions 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.

Today, Benzinga's options scanner spotted 9 options trades for Taiwan Semiconductor.

This isn't normal.

The overall sentiment of these big-money traders is split between 33% bullish and 44%, bearish.

Out of all of the options we uncovered, there was 1 put, for a total amount of $76,380, and 8, calls, for a total amount of $504,690.

Expected Price Movements

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $170.0 to $200.0 for Taiwan Semiconductor over the recent three months.

Volume & Open Interest Trends

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 $170.0 to $200.0 in the last 30 days.

Taiwan Semiconductor Option Volume And Open Interest Over Last 30 Days

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 BEARISH 08/02/24 $14.8 $14.6 $14.6 $182.50 $175.2K 541 0
TSM PUT TRADE NEUTRAL 01/17/25 $20.2 $20.0 $20.1 $190.00 $76.3K 222 0
TSM CALL SWEEP BEARISH 09/20/24 $11.65 $11.4 $11.4 $200.00 $68.4K 11.7K 107
TSM CALL SWEEP BEARISH 07/12/24 $19.4 $19.05 $19.05 $172.50 $66.6K 555 4
TSM CALL TRADE BULLISH 09/20/24 $15.2 $15.1 $15.2 $190.00 $60.8K 2.2K 18

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.

Where Is Taiwan Semiconductor Standing Right Now?

With a trading volume of 1,498,071, the price of TSM is up by 0.84%, reaching $192.66.

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

Next earnings report is scheduled for 11 days from now.

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 $216.66666666666666.

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 has decided to maintain their Outperform rating on Taiwan Semiconductor, which currently sits at a price target of $200.

Maintaining their stance, an analyst from Susquehanna continues to hold a Positive rating for Taiwan Semiconductor, targeting a price of $250.

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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