27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Someone with a lot of money to spend has taken a bearish stance on Taiwan Semiconductor (NYSE:TSM).
And retail traders should know.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.
Whether this is an institution or just a wealthy individual, 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 this whale just did?
Today, Benzinga's options scanner spotted 15 uncommon options trades for Taiwan Semiconductor.
This isn't normal.
The overall sentiment of these big-money traders is split between 26% bullish and 73%, bearish.
Out of all of the special options we uncovered, 11 are puts, for a total amount of $626,748, and 4 are calls, for a total amount of $217,280.
What's The Price Target?
Want Private Access to Benzinga Analyst?
Check out the latest strategies our team of experts are using every week so that you can always adapt to the market like the pros!—Get FULL Access to This Week's Webinar Here.
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $60.0 to $90.0 for Taiwan Semiconductor over the last 3 months.
Volume & Open Interest Development
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 $60.0 to $90.0 in the last 30 days.
Taiwan Semiconductor Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| TSM | PUT | SWEEP | NEUTRAL | 12/16/22 | $80.00 | $115.5K | 13.6K | 302 |
| TSM | PUT | TRADE | BULLISH | 12/16/22 | $80.00 | $115.1K | 13.6K | 102 |
| TSM | PUT | SWEEP | BEARISH | 01/19/24 | $60.00 | $100.4K | 815 | 150 |
| TSM | CALL | TRADE | BEARISH | 01/19/24 | $90.00 | $82.5K | 3.8K | 150 |
| TSM | CALL | SWEEP | BULLISH | 01/20/23 | $70.00 | $61.4K | 1.5K | 6 |
Where Is Taiwan Semiconductor Standing Right Now?
- With a volume of 1,557,148, the price of TSM is down -3.27% at $69.77.
- RSI indicators hint that the underlying stock may be oversold.
- Next earnings are expected to be released in 14 days.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for Taiwan Semiconductor, Benzinga Pro gives you real-time options trades alerts.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.