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 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 12 options trades for Taiwan Semiconductor.
This isn’t normal.
The overall sentiment of these big-money traders is split between 25% bullish and 41%, bearish.
Out of all of the options we uncovered, there was 1 put, for a total amount of $29,240, and 11, calls, for a total amount of $629,946.
What’s The Price Target?
After evaluating the trading volumes and Open Interest, it’s evident that the major market movers are focusing on a price band between $170.0 and $250.0 for Taiwan Semiconductor, spanning the last three months.
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 $250.0 over the preceding 30 days.
Taiwan Semiconductor Option Volume And Open Interest Over Last 30 Days
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| TSM | CALL | TRADE | BEARISH | 01/17/25 | $29.7 | $28.15 | $28.3 | $175.00 | $141.5K | 3.4K | 452 |
| TSM | CALL | SWEEP | BULLISH | 09/20/24 | $1.96 | $1.79 | $1.96 | $250.00 | $130.5K | 155 | 666 |
| TSM | CALL | TRADE | BEARISH | 06/28/24 | $6.65 | $5.8 | $6.1 | $177.50 | $61.0K | 721 | 0 |
| TSM | CALL | TRADE | BULLISH | 09/20/24 | $9.75 | $9.7 | $9.75 | $200.00 | $55.5K | 5.9K | 13 |
| TSM | CALL | SWEEP | BULLISH | 06/28/24 | $1.47 | $1.45 | $1.46 | $195.00 | $49.3K | 560 | 288 |
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.
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 1,088,249, the price of TSM is up 1.32% at $179.59.
- RSI indicators hint that the underlying stock may be overbought.
- Next earnings are expected to be released in 30 days.
Professional Analyst Ratings for Taiwan Semiconductor
A total of 3 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $179.33333333333334.
- Maintaining their stance, an analyst from Barclays continues to hold a Overweight rating for Taiwan Semiconductor, targeting a price of $170.
- In a cautious move, an analyst from Needham downgraded its rating to Buy, setting a price target of $168.
- An analyst from Susquehanna has decided to maintain their Positive rating on Taiwan Semiconductor, which currently sits at a price target of $200.
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.
