Behind the Scenes of Taiwan Semiconductor's Latest Options Trends

Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR -3.46%

Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR

TSM

127.70

-3.46%

Financial giants have made a conspicuous bearish move on Taiwan Semiconductor. Our analysis of options history for Taiwan Semiconductor (NYSE:TSM) revealed 10 unusual trades.

Delving into the details, we found 40% of traders were bullish, while 60% showed bearish tendencies. Out of all the trades we spotted, 3 were puts, with a value of $115,606, and 7 were calls, valued at $259,900.

Expected Price Movements

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $70.0 and $115.0 for Taiwan Semiconductor, spanning the last three months.

Analyzing Volume & Open Interest

In today's trading context, the average open interest for options of Taiwan Semiconductor stands at 3061.9, with a total volume reaching 541.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Taiwan Semiconductor, situated within the strike price corridor from $70.0 to $115.0, throughout the last 30 days.

Taiwan Semiconductor Call and Put Volume: 30-Day Overview

Options Call Chart

Noteworthy Options Activity:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Strike Price Total Trade Price Open Interest Volume
TSM CALL TRADE BULLISH 01/19/24 $96.00 $69.8K 85 80
TSM CALL SWEEP NEUTRAL 01/19/24 $95.00 $48.8K 12.6K 136
TSM PUT TRADE BULLISH 01/17/25 $85.00 $40.0K 1.3K 122
TSM PUT SWEEP NEUTRAL 02/16/24 $110.00 $39.8K 29 95
TSM PUT TRADE BULLISH 01/17/25 $115.00 $35.7K 258 22

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

Present Market Standing of Taiwan Semiconductor

  • With a trading volume of 2,429,649, the price of TSM is down by -0.63%, reaching $104.04.
  • Current RSI values indicate that the stock is may be approaching overbought.
  • Next earnings report is scheduled for 13 days from now.

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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