A Closer Look at Taiwan Semiconductor's Options Market Dynamics

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 25 uncommon options trades for Taiwan Semiconductor.

This isn't normal.

The overall sentiment of these big-money traders is split between 24% bullish and 36%, bearish.

Out of all of the special options we uncovered, 3 are puts, for a total amount of $353,997, and 22 are calls, for a total amount of $2,504,468.

Predicted Price Range

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $170.0 to $250.0 for Taiwan Semiconductor over the last 3 months.

Volume & Open Interest Development

In terms of liquidity and interest, the mean open interest for Taiwan Semiconductor options trades today is 4584.77 with a total volume of 19,855.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Taiwan Semiconductor's big money trades within a strike price range of $170.0 to $250.0 over the last 30 days.

Taiwan Semiconductor 30-Day Option Volume & Interest Snapshot

Largest Options Trades Observed:

About Taiwan Semiconductor

Taiwan Semiconductor Manufacturing Co. is the world's largest dedicated chip foundry, with mid-60s market share in 2024. TSMC was founded in 1987 as a joint venture of Philips, the government of Taiwan, and private investors. It went public in Taiwan in 1994 and 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 83,000 people.

Present Market Standing of Taiwan Semiconductor

• With a trading volume of 1,308,024, the price of TSM is down by -0.04%, reaching $242.53.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 69 days from now.

What Analysts Are Saying About Taiwan Semiconductor

2 market experts have recently issued ratings for this stock, with a consensus target price of $267.5.

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 $270. * An analyst from Susquehanna persists with their Positive rating on Taiwan Semiconductor, maintaining a target price of $265.

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.