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This Is What Whales Are Betting On Taiwan Semiconductor
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This Is What Whales Are Betting On Taiwan Semiconductor
Jun 3, 2024 1:34 PM

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 132 uncommon options trades for Taiwan Semiconductor.

This isn't normal.

The overall sentiment of these big-money traders is split between 39% bullish and 36%, bearish.

Out of all of the special options we uncovered, 24 are puts, for a total amount of $1,504,064, and 108 are calls, for a total amount of $21,741,287.

What's The Price Target?

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $80.0 to $220.0 for Taiwan Semiconductor over the recent three months.

Insights into Volume & Open Interest

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 $80.0 to $220.0 in the last 30 days.

Taiwan Semiconductor Option Volume And Open Interest Over Last 30 Days

Noteworthy Options Activity:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
TSM CALL TRADE BULLISH 09/20/24 $13.95 $13.65 $13.9 $150.00 $2.7M 5.8K 2.1K
TSM CALL SWEEP BULLISH 08/16/24 $27.05 $26.65 $27.0 $130.00 $556.2K 8.3K 1.6K
TSM CALL SWEEP NEUTRAL 08/16/24 $36.0 $35.6 $35.85 $120.00 $361.8K 9.7K 4.5K
TSM CALL SWEEP BULLISH 08/16/24 $36.0 $35.5 $35.85 $120.00 $361.7K 9.7K 4.4K
TSM CALL SWEEP NEUTRAL 08/16/24 $35.95 $35.5 $35.75 $120.00 $361.0K 9.7K 4.9K

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.

Where Is Taiwan Semiconductor Standing Right Now?

Currently trading with a volume of 12,830,284, the TSM's price is up by 3.03%, now at $155.61.

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

Anticipated earnings release is in 45 days.

What Analysts Are Saying About Taiwan Semiconductor

1 market experts have recently issued ratings for this stock, with a consensus target price of $168.0.

An analyst from Needham has revised its rating downward to Buy, adjusting the price target to $168.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for Taiwan Semiconductor, Benzinga Pro gives you real-time options trades alerts.

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