Spotlight on Taiwan Semiconductor: Analyzing the Surge in Options Activity

Deep-pocketed investors have adopted a bearish approach towards Taiwan Semiconductor TSM, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in TSM usually suggests something big is about to happen.

We gleaned this information from our observations today when Benzinga's options scanner highlighted 21 extraordinary options activities for Taiwan Semiconductor. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 28% leaning bullish and 47% bearish. Among these notable options, 3 are puts, totaling $265,060, and 18 are calls, amounting to $2,349,682.

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 $175.0 and $220.0 for Taiwan Semiconductor, spanning the last three months.

Insights into Volume & Open Interest

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Taiwan Semiconductor's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Taiwan Semiconductor's substantial trades, within a strike price spectrum from $175.0 to $220.0 over the preceding 30 days.

Taiwan Semiconductor 30-Day Option Volume & Interest Snapshot

Significant Options Trades Detected:

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 us 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

Current Position of Taiwan Semiconductor

• With a volume of 535,320, the price of TSM is down -0.75% at $196.75.
• RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
• Next earnings are expected to be released in 52 days.

What The Experts Say On Taiwan Semiconductor

1 market experts have recently issued ratings for this stock, with a consensus target price of $225.0.

Unusual Options Activity Detected: Smart Money on the Move

Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * An analyst from Needham downgraded its action to Buy with a price target of $225.

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.