This Is What Whales Are Betting On Taiwan Semiconductor

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 17 uncommon options trades for Taiwan Semiconductor.

This isn't normal.

The overall sentiment of these big-money traders is split between 47% bullish and 52%, bearish.

Out of all of the special options we uncovered, 4 are puts, for a total amount of $192,947, and 13 are calls, for a total amount of $897,828.

Projected Price Targets

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $90.0 to $110.0 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 $90.0 to $110.0 in the last 30 days.

Taiwan Semiconductor Option Activity Analysis: Last 30 Days

Biggest Options Spotted:

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.

Having examined the options trading patterns of Taiwan Semiconductor, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

Present Market Standing of Taiwan Semiconductor

• Currently trading with a volume of 2,949,736, the TSM's price is down by -1.61%, now at $99.9.
• RSI readings suggest the stock is currently may be approaching overbought.
• Anticipated earnings release is in 13 days.

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.