Deep-pocketed investors have adopted a bearish approach towards Taiwan Semiconductor TSM, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in TSM usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga's options scanner highlighted 9 extraordinary options activities for Taiwan Semiconductor. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 22% leaning bullish and 55% bearish. Among these notable options, 4 are puts, totaling $214,830, and 5 are calls, amounting to $255,230.
Projected Price Targets
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $120.0 to $160.0 for Taiwan Semiconductor during the past quarter.
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 $120.0 to $160.0 over the preceding 30 days.
Taiwan Semiconductor Call and Put Volume: 30-Day Overview
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| TSM | PUT | TRADE | BEARISH | 07/19/24 | $8.5 | $8.35 | $8.5 | $155.00 | $85.0K | 1.2K | 0 |
| TSM | CALL | SWEEP | BEARISH | 06/21/24 | $2.59 | $2.51 | $2.52 | $157.50 | $75.6K | 2.5K | 301 |
| TSM | CALL | SWEEP | BEARISH | 06/21/24 | $2.01 | $1.93 | $1.92 | $160.00 | $57.4K | 14.9K | 344 |
| TSM | CALL | SWEEP | BEARISH | 06/21/24 | $1.95 | $1.87 | $1.87 | $160.00 | $55.9K | 14.9K | 650 |
| TSM | PUT | SWEEP | NEUTRAL | 11/15/24 | $13.95 | $13.8 | $13.9 | $155.00 | $51.4K | 93 | 38 |
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.
Present Market Standing of Taiwan Semiconductor
- With a volume of 1,045,314, the price of TSM is down -1.48% at $152.66.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 44 days.
What Analysts Are Saying About 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 $168.0.
- An analyst from Needham downgraded its action to Buy with a price target of $168.
Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Taiwan Semiconductor with Benzinga Pro for real-time alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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