Taiwan Semiconductor Options Trading: A Deep Dive into Market Sentiment

Investors with a lot of money to spend have taken a bearish stance on Taiwan Semiconductor TSM.

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 150 options trades for Taiwan Semiconductor.

This isn't normal.

The overall sentiment of these big-money traders is split between 22% bullish and 77%, bearish.

Out of all of the options we uncovered, there was 1 put, for a total amount of $76,830, and 149, calls, for a total amount of $16,212,685.

Projected Price Targets

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 $180.0 for Taiwan Semiconductor, spanning the last three months.

Volume & Open Interest Development

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 $90.0 to $180.0 in the last 30 days.

Taiwan Semiconductor Option Volume And Open Interest Over Last 30 Days

Noteworthy Options Activity:

About Taiwan Semiconductor

Taiwan Semiconductor Manufacturing Co. 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.

Following our analysis of the options activities associated with Taiwan Semiconductor, we pivot to a closer look at the company's own performance.

Current Position of Taiwan Semiconductor

• With a volume of 10,642,699, the price of TSM is up 4.5% at $139.93.
• RSI indicators hint that the underlying stock may be overbought.
• Next earnings are expected to be released in 45 days.

What The Experts Say On Taiwan Semiconductor

A total of 1 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $160.0.

• An analyst from Susquehanna has decided to maintain their Positive rating on Taiwan Semiconductor, which currently sits at a price target of $160.

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.