Spotlight on Taiwan Semiconductor: Analyzing the Surge in Options Activity

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 85 uncommon options trades for Taiwan Semiconductor.

This isn't normal.

The overall sentiment of these big-money traders is split between 34% bullish and 51%, bearish.

Out of all of the special options we uncovered, 23 are puts, for a total amount of $1,753,900, and 62 are calls, for a total amount of $4,454,242.

Predicted Price Range

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $100.0 and $210.0 for Taiwan Semiconductor, spanning the last three months.

Volume & Open Interest Development

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

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 activity within a strike price range from $100.0 to $210.0 in the last 30 days.

Taiwan Semiconductor Option Volume And Open Interest Over Last 30 Days

Largest Options Trades Observed:

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 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.

Present Market Standing of Taiwan Semiconductor

• With a volume of 21,677,113, the price of TSM is down -0.02% at $155.36.
• RSI indicators hint that the underlying stock may be approaching oversold.
• Next earnings are expected to be released in 71 days.

Professional Analyst Ratings for Taiwan Semiconductor

4 market experts have recently issued ratings for this stock, with a consensus target price of $230.0.

• An analyst from Needham has revised its rating downward to Buy, adjusting the price target to $210.
• An analyst from Susquehanna persists with their Positive rating on Taiwan Semiconductor, maintaining a target price of $250.
• An analyst from Susquehanna persists with their Positive rating on Taiwan Semiconductor, maintaining a target price of $250.
• An analyst from Needham has decided to maintain their Buy rating on Taiwan Semiconductor, which currently sits at a price target of $210.

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.