What the Options Market Tells Us About 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 46 uncommon options trades for Taiwan Semiconductor.

This isn't normal.

The overall sentiment of these big-money traders is split between 39% bullish and 60%, bearish.

Out of all of the special options we uncovered, 7 are puts, for a total amount of $531,716, and 39 are calls, for a total amount of $2,587,940.

Projected Price Targets

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $80.0 to $150.0 for Taiwan Semiconductor over the last 3 months.

Volume & Open Interest Development

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 $80.0 to $150.0 in the last 30 days.

Taiwan Semiconductor Option Activity Analysis: Last 30 Days

Noteworthy Options Activity:

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.

Taiwan Semiconductor's Current Market Status

• With a trading volume of 6,910,177, the price of TSM is up by 0.51%, reaching $119.99.
• Current RSI values indicate that the stock is may be overbought.
• Next earnings report is scheduled for 71 days from now.

What The Experts Say On Taiwan Semiconductor

Over the past month, 1 industry analysts have shared their insights on this stock, proposing an average target price of $125.0.

• An analyst from Barclays has decided to maintain their Overweight rating on Taiwan Semiconductor, which currently sits at a price target of $125.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Taiwan Semiconductor options trades with real-time alerts from Benzinga Pro.