Unpacking the Latest Options Trading Trends in Taiwan Semiconductor (NYSE: TSM)

Whales with substantial capital have adopted a notably bearish outlook on Taiwan Semiconductor (TSM). In analyzing the recent options trading history for Taiwan Semiconductor, we identified 59 distinct trades.

Delving into the specifics reveals that 42% of these investors initiated trades with optimistic (bullish) expectations, while 44% opted for a pessimistic (bearish) stance. The trades encompassed 11 put options and 48 call options, amounting to a combined total of $690,119 for puts and $2,866,123 for calls.

Expected Price Movements

Given the trading patterns observed, it seems significant investors are targeting a price range between $130.00 and $310.00 for Taiwan Semiconductor over the past three months.

Volume & Open Interest Development

Examining volume and open interest is crucial for conducting thorough research on a stock. This information helps gauge the liquidity and interest surrounding Taiwan Semiconductor's options at specific strike prices.

The following outlines the fluctuations in call and put options volume and open interest related to Taiwan Semiconductor's whale activities over the past 30 days, focusing on the strike price range from $130.00 to $310.00.

Taiwan Semiconductor 30-Day Option Volume & Interest Snapshot

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Largest Options Trades Observed:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
TSM	CALL	SWEEP	NEUTRAL	02/21/25	$22.90	$22.75	$22.90	$195.00	$228.90K	76.90K	116
TSM	CALL	TRADE	BEARISH	02/21/25	$22.65	$22.45	$22.45	$195.00	$222.20K	76.90K	280
TSM	PUT	TRADE	BULLISH	09/19/25	$12.75	$12.50	$12.50	$170.00	$216.20K	91	174
TSM	CALL	TRADE	BEARISH	01/17/25	$16.65	$16.45	$16.51	$200.00	$165.10K	16.00K	1.20K
TSM	CALL	SWEEP	BULLISH	11/01/24	$3.55	$3.40	$3.55	$205.00	$106.50K	1.30K	3.40K

About Taiwan Semiconductor

Taiwan Semiconductor Manufacturing Company (TSMC) stands as the premier chip foundry globally, commanding over 60% of the market share. Established in 1987 as a collaboration involving Philips, the Taiwanese government, and private investors, TSMC launched as an ADR on the US market in 1997. The company's extensive scale and superior technology enable it to maintain robust operating margins, even amid fierce competition in the foundry sector.

Moreover, the industry's transition to fabless business models has fostered tailwind effects for TSMC. The company boasts an impressive client roster that includes names like Apple, AMD, and Nvidia, all of whom leverage advanced process technologies for their semiconductor designs. TSMC currently employs over 73,000 individuals.

After a comprehensive examination of the options trading dynamics around Taiwan Semiconductor, we will now delve deeper into assessing the company's current market standing and performance.

Taiwan Semiconductor's Current Market Status

• Currently, the trading volume stands at 10,431,093, with TSM's price having increased by 0.98% to reach $200.43.
• Present RSI values suggest that the stock may be nearing overbought levels.
• The forthcoming earnings report is set for release in 85 days.

What Analysts Are Saying About Taiwan Semiconductor

Three market analysts have recently provided ratings for this stock, with a consensus target price of approximately $216.67. Notably, one analyst from Needham has retained their Buy rating, projecting a target price of $225. Another analyst from the same firm downgraded their position to Buy with a target of $210. Consistently, an analyst from Barclays maintains an Overweight rating with a target price of $215.

Unusual Options Activity Detected: Smart Money on the Move

Monitoring options trading can reveal insights into potential market shifts before they unfold. Informed traders manage inherent risks by continuously educating themselves, adapting strategies, and closely monitoring market movements. Stay updated with real-time alerts concerning Taiwan Semiconductor's options trades to stay ahead of market fluctuations.

trading, investors, options