More Weakness To Come For Taiwan Semiconductor Ahead Of Results

Taiwan Semiconductor Mfg. Co. Ltd. TSM is scheduled to report its quarterly results before the opening bell on Thursday.

On CNBC's "Options Action," Michael Khouw of Optimize Advisors said Taiwan Semiconductor traded 1.5 times its average on Tuesday. The traders represent a move of around 5% in the stock, higher than the average of 1.5% over the last eight quarters, he added.

Check out other stocks making big moves in the premarket.

There were buyers of 7,489 of the July 77 puts at an average price of 96 cents per contract, Khouw mentioned. Traders are betting that Taiwan Semiconductor’s stock will declined by at least 4% by Friday.

TSM Price Action: Shares of Taiwan Semiconductor have lost around 39% year to date. On Wednesday, July 13, the stock price opened at $79.40 per share and reached $81.49 by 11:10 a.m. EST.