What the Options Market Tells Us About Taiwan Semiconductor

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 24 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 54% leaning bullish and 25% bearish. Among these notable options, 4 are puts, totaling $213,295, and 20 are calls, amounting to $1,586,967.

What's The Price Target?

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $105.0 to $310.0 for Taiwan Semiconductor during the past quarter.

Analyzing Volume & Open Interest

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

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 activity within a strike price range from $105.0 to $310.0 in the last 30 days.

Taiwan Semiconductor 30-Day Option Volume & Interest Snapshot

Biggest Options Spotted:

About Taiwan Semiconductor

Taiwan Semiconductor Manufacturing Co. is the world's largest dedicated chip foundry, with mid-60s market share in 2024. TSMC was founded in 1987 as a joint venture of Philips, the government of Taiwan, and private investors. It went public in Taiwan in 1994 and as an ADR in the US 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

• With a volume of 1,316,921, the price of TSM is up 0.77% at $225.74.
• RSI indicators hint that the underlying stock may be overbought.
• Next earnings are expected to be released in 20 days.

What The Experts Say On Taiwan Semiconductor

In the last month, 2 experts released ratings on this stock with an average target price of $247.5.

Unusual Options Activity Detected: Smart Money on the Move

Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * An analyst from Susquehanna has decided to maintain their Positive rating on Taiwan Semiconductor, which currently sits at a price target of $255. * An analyst from Barclays has decided to maintain their Overweight rating on Taiwan Semiconductor, which currently sits at a price target of $240.

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.