Taiwan Semiconductor Unusual Options Activity For August 16

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 20 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 40% leaning bullish and 60% bearish. Among these notable options, 5 are puts, totaling $656,205, and 15 are calls, amounting to $690,680.

What's The Price Target?

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $135.0 to $220.0 for Taiwan Semiconductor during the past quarter.

Analyzing Volume & Open Interest

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Taiwan Semiconductor's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Taiwan Semiconductor's significant trades, within a strike price range of $135.0 to $220.0, over the past month.

Taiwan Semiconductor Call and Put Volume: 30-Day Overview

Largest Options Trades Observed:

About Taiwan Semiconductor

Taiwan Semiconductor Manufacturing Co. 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.

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

Present Market Standing of Taiwan Semiconductor

• With a trading volume of 1,666,130, the price of TSM is down by -0.26%, reaching $173.5.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 62 days from now.

Expert Opinions on Taiwan Semiconductor

3 market experts have recently issued ratings for this stock, with a consensus target price of $236.66666666666666.

• Maintaining their stance, an analyst from Susquehanna continues to hold a Positive rating for Taiwan Semiconductor, targeting a price of $250.
• An analyst from Needham downgraded its action to Buy with a price target of $210.
• An analyst from Susquehanna persists with their Positive rating on Taiwan Semiconductor, maintaining a target price of $250.

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.