Direxion Daily TSM Bull 2X Shares (NASDAQ: TSMX)

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Trading Taiwan Semiconductor&#39;s Upcoming Litmus Test Through Direxion&#39;s TSMX, TSMZ Funds

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Direxion expands ETFs to include high-risk, short-term options for traders targeting Netflix and TSMC. Not for buy-and-hold investors.

Netflix, TSMC Traders Can Now Utilize Direxion&#39;s Leveraged ETFs For Bold Market Moves

Direxion Daily TSM Bull 2X Shares

Although technology juggernaut Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) invariably commands the spotlight for all things AI-related, traders may first look to chip foundry Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) for clues regarding sentiment for the broader innovation ecosystem. That's mainly because the contract manufacturing specialist is scheduled to disclose its third-quarter earnings report next week.



Wall Street anticipates Taiwan Semiconductor — which is commonly abbreviated as TSMC — to post<a href="https://finance.yahoo.com/quote/tsm/analysis"> earnings per share of $1.80</a>, with a high-side view of $1.90. In the year- ago quarter, the company managed to deliver EPS of $1.29. On the top line, market experts are fishing for a<a href="https://www.benzinga.com/quote/TSM/guidance"> consensus target of $22.65 billion</a>, with an optimistic forecast of $23.2 billion. One year ago, the chip manufacturer rang up $17.07 billion.



Generally, sentiment seems bullish for TSM stock. Financially, the underlying company has managed to consistently beat its bottom-line targets. In the past four quarters, TSMC's average earnings surprise landed at 6.03%. On a fundamental note, the tech enterprise is<a href="https://www.benzinga.com/government/24/10/41207010/taiwan-semiconductor-strengthens-europes-semiconductor-base"> expanding its global footprint</a>, most recently through breaking ground of its fabrication facility in Dresden, Germany.



At the same time, TSM stock isn't without critics. For one thing, the magnitude of its earnings beats have softened consecutively since Q3 2023. Further, the technical backdrop isn't particularly encouraging for the bulls recently, with<a href="https://www.benzinga.com/insights/options/24/10/41209737/taiwan-semiconductors-options-frenzy-what-you-need-to-know"> options data showing a rise in bearish sentiment</a>.



The Direxion ETFs: Nevertheless, the back-and-forth among traders regarding TSM stock provides rich grounds for financial services giant Direxion and its Taiwan Semiconductor-focused exchange-traded funds. One of the company's most recent products is the Direxion Daily TSM Bull 2X Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSMX#NASDAQ">TSMX</a>), an ETF that seeks 200% of the performance of TSMC shares.



On the other end of the aisle is the Direxion Daily TSM Bear 1X Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSMZ#NASDAQ">TSMZ</a>), which seeks 100% of the inverse performance of TSM stock. As the financial services provider notes, both funds involve a high degree of risk. Furthermore, investors should avoid holding a position for longer than one day in both these ETFs due to the daily compounding effect of volatility.



The TSMX ETF: Launched earlier this month, TSMX got off to a strong start thanks to the underlying equity moving up strongly ahead of the Q3 earnings test.



<ul>
<li>Since its market debut, TSMX has been rising in an ascending staircase pattern, presenting an auspicious framework for bullish speculators.</li>



<li>One factor to watch is the heavy intraday selling volume, which may indicate an environment of wild choppiness.</li>
</ul>



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcqvkBrDcqp7NTWMZ6TFPp-6k4NrhAgghR0AFSkZuWrDRlYnfDEnChOU9tzZ5Gn8gLDtTld1ldIbsqgV1Cxk9NhyognmPZczicZO5oHE7fa6n-IoVG14iPCdrD9HszcftqW5S2UWwXEwYRTZn2NcO-zcs8?key=z1osrM5V1SDn1Ft2MjAsTg" alt=""/></figure>



The TSMZ ETF: Also launched in early October, TSMZ has not been kind to bearish speculators as the bulls pile into AI-related enterprises.



<ul>
<li>The inverse fund made its debut at $24.50, per data from Benzinga. According to Direxion's website, TSMZ currently carries a market price of $23.82.</li>



<li>Although the introduction of the inverse ETF has not gone well for the bears, the pessimistic options data suggests that the smart money is increasingly betting against TSM stock.</li>
</ul>



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdolQnYaAK8dwag0c9H80zgbboS9QOtZQPtFlYCb8UPRUQ9Lnc0pUdvj7JT1LCW6iFfmVEH0LnQFEvAXsvPbFBS-bFsW4-9JHM_63PBT__2TJ728_s20lMRIIgqyUepAR6WsPSwMn0ocfOz_uHBr7U2K4rs?key=z1osrM5V1SDn1Ft2MjAsTg" alt=""/></figure>



Featured photo by <a href="https://pixabay.com/users/analogicus-8164369/?utm_source=link-attribution&amp;utm_medium=referral&amp;utm_campaign=image&amp;utm_content=5315089">Tom</a> on <a href="https://pixabay.com/?utm_source=link-attribution&amp;utm_medium=referral&amp;utm_campaign=image&amp;utm_content=5315089">Pixabay</a>.

Trading Taiwan Semiconductor's Upcoming Litmus Test Through Direxion's TSMX, TSMZ Funds

Direxion has just expanded its roster of <a href="https://www.benzinga.com/topic/direxion">leveraged and inverse ETFs.</a> This time, it targets two household names: Netflix Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) and Taiwan Semiconductor Manufacturing Co Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>).



In a world where traders crave short-term, high-risk opportunities, Direxion's new offerings pack a punch.



<h2 class="wp-block-heading">Netflix, TSMC &#8211; New Leveraged Bull &amp; Bear ETFs</h2>



Launched on Thursday, these ETFs allow active traders to magnify their positions on daily movements in these two giant stocks:



<ul>
<li>Direxion Daily NFLX Bull 2X Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFXL#NASDAQ">NFXL</a>) (bull 2x Netflix)</li>



<li>Direxion Daily NFLX Bear 1X Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFXS#NASDAQ">NFXS</a>) (bear 1x Netflix)</li>



<li>Direxion Daily TSM Bull 2X Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSMX#NASDAQ">TSMX</a>) (bull 2x TSMC) </li>



<li>Direxion Daily TSM Bear 1X Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSMZ#NASDAQ">TSMZ</a>) (bear 1x TSMC)</li>
</ul>



Edward Egilinsky, managing director at Direxion, highlighted the appeal, saying, "Netflix and Taiwan Semiconductor Manufacturing are two of the hottest names in the retail space, lending themselves well to tactical trading in response to potential company events and market sentiment."



Read Also: <a href="https://www.benzinga.com/government/24/10/41140484/taiwan-semiconductor-has-soared-96-but-geopolitical-risks-persist">Taiwan Semiconductor Has Soared 96% But Geopolitical Risks Persist</a>



<h2 class="wp-block-heading">Short-Term Plays For The Bold And Brave</h2>



While these ETFs might sound exciting for high-octane traders, Direxion is clear on their intended audience. These aren't your buy-and-hold style investments. Instead, they're designed for short-term plays, allowing traders to jump in and out based on immediate market shifts.



"We look forward to expanding our suite of single stock leveraged and inverse ETFs in the near future," Egilinsky added, signaling that this is just the beginning for Direxion's high-risk, high-reward offerings.



For the bold and daring, it's an opportunity to bet on Netflix's next blockbuster earnings or TSMC's supply chain victories—but don't get too comfortable. These tools demand quick moves, sharp precision, and vigilant risk management.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/cannabis/24/10/41149343/how-google-microsoft-and-netflix-are-fueling-cannabis-legalization-with-millions-in-donations">How Google, Microsoft And Netflix Are Fueling Cannabis Legalization With Millions In Donations</a></li>
</ul>



Photo: Shutterstock



Image created using artificial intelligence via Midjourney.

Netflix, TSMC Traders Can Now Utilize Direxion's Leveraged ETFs For Bold Market Moves

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