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 13 uncommon options trades for Taiwan Semiconductor.

This isn't normal.

The overall sentiment of these big-money traders is split between 38% bullish and 46%, bearish.

Out of all of the special options we uncovered, 3 are puts, for a total amount of $155,234, and 10 are calls, for a total amount of $583,919.

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

In today's trading context, the average open interest for options of Taiwan Semiconductor stands at 4483.82, with a total volume reaching 3,157.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Taiwan Semiconductor, situated within the strike price corridor from $160.0 to $190.0, throughout the last 30 days.

Taiwan Semiconductor Option Volume And Open Interest Over Last 30 Days

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.

In light of the recent options history for Taiwan Semiconductor, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Current Position of Taiwan Semiconductor

• Currently trading with a volume of 508,009, the TSM's price is up by 0.14%, now at $182.22.
• RSI readings suggest the stock is currently may be approaching overbought.
• Anticipated earnings release is in 22 days.

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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.