Taiwan Semiconductor (TSM) reported strong Q2 revenue, with high net income and free cash flow (FCF) margins. However, TSM stock is down, giving value investors an opportunity. One play is to sell short OTM puts.
TSM closed down 2.3% on Thursday, July 16, at $409.74, after releasing its Q2 earnings before the market opened, but then rose afterwards. It's also down 14.2% from its peak price of $477.57 on June 30. However, given its strong showing in Q2, TSM could be worth much more, as I will show in this article.