Tony Zhang Sees Unusual Options Activity In Taiwan Semiconductor

On CNBC's "Options Action," Tony Zhang said he saw significant options activity in Taiwan Semiconductor Mfg. Co. Ltd. TSM during the session on Monday. The options volume was fairly average, but puts outpaced calls by a fair amount as 50% more puts were traded in Taiwan Semiconductor on Monday.

One trader bought around 7,000 contracts of the July 2, $111 puts for $1.17. These puts are expiring in just nine trading days so this is a trader who laid out almost $800,000 in premium to bet that Taiwan Semiconductor is going to decline around 3.7% over the next nine trading days, said Zhang.