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Behind the Scenes of Taiwan Semiconductor's Latest Options Trends
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Behind the Scenes of Taiwan Semiconductor's Latest Options Trends
Dec 24, 2024 7:09 AM

Investors with a lot of money to spend have taken a bearish stance on Taiwan Semiconductor .

And retail traders should know.

We noticed this today when the positions 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.

Today, Benzinga's options scanner spotted 10 options trades for Taiwan Semiconductor.

This isn't normal.

The overall sentiment of these big-money traders is split between 30% bullish and 70%, bearish.

Out of all of the options we uncovered, there was 1 put, for a total amount of $88,800, and 9, calls, for a total amount of $437,504.

What's The Price Target?

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $170.0 to $220.0 for Taiwan Semiconductor during the past quarter.

Analyzing 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 $170.0 to $220.0 over the preceding 30 days.

Taiwan Semiconductor Option Activity Analysis: Last 30 Days

Significant Options Trades Detected:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
TSM PUT TRADE BULLISH 04/17/25 $7.5 $7.35 $7.4 $180.00 $88.8K 1.6K 120
TSM CALL SWEEP BULLISH 02/21/25 $40.8 $38.7 $40.1 $170.00 $80.2K 1.1K 1
TSM CALL TRADE BEARISH 01/17/25 $23.5 $23.2 $23.2 $185.00 $69.6K 8.5K 30
TSM CALL TRADE BEARISH 01/17/25 $37.35 $36.1 $36.1 $170.00 $61.3K 3.0K 87
TSM CALL SWEEP BEARISH 01/31/25 $6.15 $6.0 $6.08 $220.00 $54.7K 1.2K 91

About Taiwan Semiconductor

Taiwan Semiconductor Manufacturing Co. ( TSM ) 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.

Taiwan Semiconductor's Current Market Status

With a trading volume of 582,898, the price of TSM is down by -0.5%, reaching $206.32.

Current RSI values indicate that the stock is may be approaching overbought.

Next earnings report is scheduled for 23 days from now.

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.

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.

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