Taiwan Semiconductor's Options Frenzy: What You Need to Know

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 50 uncommon options trades for Taiwan Semiconductor.

This isn't normal.

The overall sentiment of these big-money traders is split between 26% bullish and 56%, bearish.

Out of all of the special options we uncovered, 5 are puts, for a total amount of $367,353, and 45 are calls, for a total amount of $3,590,799.

Projected Price Targets

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $70.0 to $270.0 for Taiwan Semiconductor over the recent three months.

Volume & Open Interest Trends

Looking at the volume and open interest is a powerful move while trading options. 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 trades within a strike price range from $70.0 to $270.0 in the last 30 days.

Taiwan Semiconductor 30-Day Option Volume & Interest Snapshot

Biggest Options Spotted:

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.

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 volume of 1,420,479, the price of TSM is down -0.43% at $190.95.
• RSI indicators hint that the underlying stock may be approaching overbought.
• Next earnings are expected to be released in 64 days.

Expert Opinions on Taiwan Semiconductor

3 market experts have recently issued ratings for this stock, with a consensus target price of $216.66666666666666.

Turn $1000 into $1270 in just 20 days?

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 Needham downgraded its action to Buy with a price target of $210. * An analyst from Needham persists with their Buy rating on Taiwan Semiconductor, maintaining a target price of $225. * An analyst from Barclays persists with their Overweight rating on Taiwan Semiconductor, maintaining a target price of $215.

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.