Traders Expect Taiwan Semiconductor Shares To Continue Rallying After Buffett Takes $4B Stake

Traders Expect Taiwan Semiconductor Shares To Continue Rallying After Buffett Takes $4B Stake

On CNBC's "Options Action," Michael Khouw of Optimize Advisors said that Taiwan Semiconductor Mfg. Co. Ltd. TSM traded 5 times its average daily call volume on Tuesday, after Berkshire Hathaway and Tiger Global took stakes in the company.

Check out other stocks making moves in the premarket.

There were buyers of 16,539 of the November 85 calls at an average price of 69 cents per contract, Khouw stated. Traders expect Taiwan Semiconductor’s shares to rise by the weekly expiration, he added.

More semiconductor companies are scheduled to report earnings this week.

TSM Price Action: Shares of Taiwan Semiconductor climbed by 10.52% to close at $80.46 on Tuesday.

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Posted In: CNBCMichael KhouwOptimize AdvisorsLong IdeasOptionsMarketsMediaTrading Ideas