Behind the Scenes of Taiwan Semiconductor’s Latest Options Moves – Taiwan Semiconductor (NYSE:TSM)

Big-money investors are bearish on Taiwan Semiconductor TSMC.

Retailers should know.

I noticed this today when a trade appeared in the public options history we’re tracking on Benzinga.

We don’t know if these are institutional investors or just wealthy individuals, but something this big happening at TSM means someone knows something is about to happen.

So how do we know what these investors have done?

Benzinga’s options scanner discovered 13 unusual options trades for Taiwan Semiconductor today.

This is not normal.

The overall sentiment of these large traders is split with 38% bulls and 46% bears.

Of all the special options we found, there are three puts with a total value of $155,234 and ten calls with a total value of $583,919.

Expected price range

Based on trading activity, it appears that major investors have been targeting Taiwan Semiconductor’s stock price in the range of $160.0 to $190.0 over the past three months.

Trading Volume and Open Interest Analysis

As of today’s trading, the average open balance for Taiwan Semiconductor options is 4483.82, with total trading volume reaching 3,157.00. The attached graph shows the trading volume and open balance over the past 30 days for both call and put options for high value trades on Taiwan Semiconductor within the strike price range of $160.0 to $190.0.

Taiwan Semiconductor options trading volume and open balances over the last 30 days

Largest options trades observed:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Sell Buy Price Strike Total Traded Price Open Interest Volume TSM Call Trade Bearish 10/18/24 $12.4 $12.15 $12.25 $175.00 $98.0K 15.7K 84 TSM Call Trade Bearish 01/17/25 $16.05 $16.0 $16.0 $185.00 $96.0K 5.2K 87 TSM Call Sweep Neutral 12/20/24 $11.55 $11.35 $11.4 $190.00 $71.0K 3.1K 131 TSM Call Sweep Bearish 09/27/24 $2.35 $2.17 $2.17 $182.50 $65.1K 1.7K 354 TSM Call Sweep Bullish 09/27/24 $22.1 $21.4 $22.1 $160.00 $61.8K 498 0

About Taiwan Semiconductor

Taiwan Semiconductor Manufacturing Corporation is the world’s largest dedicated chip foundry with over 60% market share. TSMC was founded in 1987 as a joint venture between Philips, the Taiwanese government, and private investors. It went public as an ADR in the United States in 1997. TSMC’s scale and high-quality technology enable the company to generate solid operating profits in the highly competitive foundry business. In addition, the transition to a fabless business model has been a boon for TSMC. The foundry leader has a prominent customer base that includes Apple, AMD, and Nvidia, who are looking to apply cutting-edge process technology to their semiconductor designs. TSMC employs more than 73,000 people.

Given Taiwan Semiconductor’s recent options history, it is appropriate to focus on the company itself, and we want to investigate its current performance.

Current situation of Taiwan Semiconductor

Currently, TSM has a trading volume of 508,009 and the price has risen by 0.14%, currently at $182.22. The RSI readings suggest that the stock may currently be approaching overbought status. The expected earnings release is 22 days away.

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