Deep-pocketed investors have adopted a bearish approach towards Taiwan Semiconductor (NYSE: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 10 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 20% leaning bullish and 80% bearish. Among these notable options, 4 are puts, totaling $261,980, and 6 are calls, amounting to $258,074.
Predicted Price Range
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $90.0 to $105.0 for Taiwan Semiconductor during the past quarter.
Insights into Volume & Open Interest
Looking at the volume and open interest is a powerful move while trading options. 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 trades within a strike price range from $90.0 to $105.0 in the last 30 days.
Taiwan Semiconductor Option Activity Analysis: Last 30 Days
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| TSM | PUT | TRADE | BEARISH | 12/01/23 | $99.00 | $135.8K | 58 | 712 |
| TSM | CALL | SWEEP | BEARISH | 01/19/24 | $100.00 | $86.2K | 24.4K | 520 |
| TSM | PUT | SWEEP | BULLISH | 01/19/24 | $90.00 | $64.0K | 13.3K | 781 |
| TSM | CALL | TRADE | BEARISH | 01/19/24 | $100.00 | $40.5K | 24.4K | 120 |
| TSM | CALL | TRADE | BEARISH | 01/19/24 | $100.00 | $39.6K | 24.4K | 528 |
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.
Following our analysis of the options activities associated with Taiwan Semiconductor, we pivot to a closer look at the company’s own performance.
Taiwan Semiconductor’s Current Market Status
- With a volume of 2,599,969, the price of TSM is up 0.13% at $98.67.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 55 days.
What The Experts Say On Taiwan Semiconductor
Over the past month, 1 industry analysts have shared their insights on this stock, proposing an average target price of $115.0.
- An analyst from Needham downgraded its action to Buy with a price target of $115.
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Taiwan Semiconductor options trades with real-time alerts from Benzinga Pro.
