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 29 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 34% leaning bullish and 41% bearish. Among these notable options, 11 are puts, totaling $1,337,302, and 18 are calls, amounting to $2,832,782.
Predicted Price Range
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $140.0 to $250.0 for Taiwan Semiconductor over the recent three months.
Volume & Open Interest Trends
Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.
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 activity within a strike price range from $140.0 to $250.0 in the last 30 days.
Taiwan Semiconductor Option Activity Analysis: Last 30 Days
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| TSM | CALL | TRADE | BULLISH | 01/17/25 | $10.05 | $9.95 | $10.04 | $210.00 | $1.6M | 20.7K | 1.7K |
| TSM | PUT | SWEEP | BULLISH | 11/08/24 | $18.55 | $18.2 | $18.2 | $212.50 | $527.8K | 337 | 290 |
| TSM | PUT | SWEEP | BEARISH | 12/20/24 | $6.2 | $6.15 | $6.2 | $185.00 | $299.4K | 3.8K | 500 |
| TSM | CALL | TRADE | BEARISH | 11/29/24 | $14.95 | $14.75 | $14.75 | $185.00 | $236.0K | 358 | 160 |
| TSM | CALL | TRADE | BEARISH | 01/15/27 | $72.4 | $71.4 | $71.4 | $155.00 | $142.8K | 23 | 20 |
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 US 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.
After a thorough review of the options trading surrounding Taiwan Semiconductor, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
Current Position of Taiwan Semiconductor
- Currently trading with a volume of 3,253,843, the TSM's price is up by 0.79%, now at $196.22.
- RSI readings suggest the stock is currently may be approaching overbought.
- Anticipated earnings release is in 79 days.
Professional Analyst Ratings for Taiwan Semiconductor
A total of 3 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $216.66666666666666.
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20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access. * An analyst from Barclays persists with their Overweight rating on Taiwan Semiconductor, maintaining a target price of $215. * In a cautious move, an analyst from Needham downgraded its rating to Buy, setting a price target of $210. * Consistent in their evaluation, an analyst from Needham keeps a Buy rating on Taiwan Semiconductor with a target price of $225.
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.
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