A Closer Look at Taiwan Semiconductor's Options Market Dynamics

Deep-pocketed investors have adopted a bullish approach towards Taiwan Semiconductor 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 9 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 77% leaning bullish and 22% bearish. Among these notable options, 4 are puts, totaling $138,987, and 5 are calls, amounting to $446,226.

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 $40.0 to $120.0 for Taiwan Semiconductor over the last 3 months.

Insights into Volume & Open Interest

In terms of liquidity and interest, the mean open interest for Taiwan Semiconductor options trades today is 2813.14 with a total volume of 1,519.00.

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 $40.0 to $120.0 over the last 30 days.

Taiwan Semiconductor 30-Day Option Volume & Interest Snapshot

Significant Options Trades Detected:

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.

After a thorough review of the options trading surrounding Taiwan Semiconductor, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Present Market Standing of Taiwan Semiconductor

• With a trading volume of 1,786,281, the price of TSM is up by 1.07%, reaching $115.35.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 85 days from now.

Expert Opinions on Taiwan Semiconductor

Over the past month, 1 industry analysts have shared their insights on this stock, proposing an average target price of $125.0.

• An analyst from Barclays persists with their Overweight rating on Taiwan Semiconductor, maintaining a target price of $125.

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.