This Is What Whales Are Betting On Taiwan Semiconductor

Investors with a lot of money to spend have taken a bearish stance on Taiwan Semiconductor (NYSE:TSM).

And retail traders should know.

We noticed this today when the trades 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.

So how do we know what these investors just did?

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

This isn't normal.

The overall sentiment of these big-money traders is split between 10% bullish and 90%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $135,311, and 8 are calls, for a total amount of $732,707.

What's The Price Target?

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $82.0 to $120.0 for Taiwan Semiconductor over the last 3 months.

Analyzing Volume & Open Interest

In terms of liquidity and interest, the mean open interest for Taiwan Semiconductor options trades today is 4245.0 with a total volume of 5,424.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Taiwan Semiconductor's big money trades within a strike price range of $82.0 to $120.0 over the last 30 days.

Taiwan Semiconductor Option Activity Analysis: Last 30 Days

Largest Options Trades Observed:

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.

In light of the recent options history for Taiwan Semiconductor, it's now appropriate to focus on the company itself. We aim to explore its current standing in the market and gather opinions from analysts on the stock.

Taiwan Semiconductor's Current Market Status

• With a trading volume of 3,319,104, the price of TSM is up by 0.83%, reaching $92.76.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 63 days from now.

Professional Analyst Ratings for 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.

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.