Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) and AT&T Inc. (NYSE:T) are scheduled to announce their earnings next week. Taiwan Semiconductor stock has lost over 2.5% in the last month.

Interestingly, when Warren Buffett was questioned recently by Nikkei Asia on the reason behind Berkshire Hathaway's (BRK-A) (BRK-B) stake reduction in TSMC, he hinted at geopolitical tensions as the reason behind the call.

In contrast, AT&T stock has gained over 8% in the last month. At the end of March, the company's board of directors declared a quarterly dividend of $0.2775 per share on its common stock.

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As investors and traders gear up for the earnings season, here's a look at how professional traders have positioned themselves in the options market:

1. TSMC: NYSE-listed shares of TSMC closed at $87.05 on Thursday. Options expiring on April 21 show a significant open interest build-up at the $95 Call strike, indicating the level could act as a stiff resistance in the near term. On the downside, maximum open interest accumulation amongst out-of-the-money Put options can be seen at the $80 Put strike, indicating traders are expecting this level to provide decent support in the near term. The 8%-9% range on either side reflects the potential volatility that traders are factoring in ahead of the result.

2. AT&T: Shares of the company closed at $19.96 on Thursday. Options expiring on April 21 show significant open interest accumulation at the $20 Call strike, indicating traders do not expect the stock to breach this level on the upside by next week. On the downside, the $19 level is expected to provide decent support.

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