Market Whales and Their Recent Bets on TSM Options

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

And retail traders should know.

We noticed this today when the positions 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.

Today, Benzinga's options scanner spotted 10 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 options we uncovered, there was 1 put, for a total amount of $64,252, and 9, calls, for a total amount of $2,824,187.

What's The Price Target?

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $60.0 and $125.0 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 6406.0, with a total volume reaching 7,886.00. 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 $60.0 to $125.0, throughout the last 30 days.

Taiwan Semiconductor Call and Put Volume: 30-Day Overview

Noteworthy Options Activity:

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.

Taiwan Semiconductor's Current Market Status

• Trading volume stands at 992,152, with TSM's price up by 0.7%, positioned at $113.75.
• RSI indicators show the stock to be may be overbought.
• Earnings announcement expected in 77 days.

What Analysts Are Saying About Taiwan Semiconductor

A total of 1 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $125.0.

• Maintaining their stance, an analyst from Barclays continues to hold a Overweight rating for Taiwan Semiconductor, targeting a price of $125.

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.