Behind the Scenes of Taiwan Semiconductor's Latest Options Trends

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 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 9 uncommon 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 special options we uncovered, 3 are puts, for a total amount of $180,200, and 6 are calls, for a total amount of $350,335.

Predicted Price Range

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $160.0 to $190.0 for Taiwan Semiconductor over the recent three months.

Analyzing Volume & Open Interest

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 $160.0 to $190.0 over the preceding 30 days.

Taiwan Semiconductor Call and Put Volume: 30-Day Overview

Significant Options Trades Detected:

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.

Taiwan Semiconductor's Current Market Status

• Currently trading with a volume of 2,547,402, the TSM's price is down by -2.56%, now at $169.5.
• RSI readings suggest the stock is currently may be approaching overbought.
• Anticipated earnings release is in 24 days.

What Analysts Are Saying About Taiwan Semiconductor

3 market experts have recently issued ratings for this stock, with a consensus target price of $190.0.

• An analyst from Susquehanna persists with their Positive rating on Taiwan Semiconductor, maintaining a target price of $200.
• An analyst from Barclays has decided to maintain their Overweight rating on Taiwan Semiconductor, which currently sits at a price target of $170.
• An analyst from Bernstein has decided to maintain their Outperform rating on Taiwan Semiconductor, which currently sits at a price target of $200.

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.