Someone with a lot of money to spend has taken a bearish stance on Taiwan Semiconductor (NYSE:TSM).
And retail traders should know.
We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.
Whether this is an institution or just a wealthy individual, we don't know. But when something this big happens with TSM, it often means somebody knows something is about to happen.
So how do we know what this whale just did?
Today, Benzinga's options scanner spotted 59 uncommon options trades for Taiwan Semiconductor.
This isn't normal.
The overall sentiment of these big-money traders is split between 38% bullish and 61%, bearish.
Out of all of the special options we uncovered, 7 are puts, for a total amount of $301,786, and 52 are calls, for a total amount of $12,836,642.
What's The Price Target?
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $60.0 to $145.0 for Taiwan Semiconductor over the last 3 months.
Volume & Open Interest Development
In terms of liquidity and interest, the mean open interest for Taiwan Semiconductor options trades today is 3687.64 with a total volume of 68,015.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for Taiwan Semiconductor's big money trades within a strike price range of $60.0 to $145.0 over the last 30 days.
Taiwan Semiconductor Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| TSM | CALL | SWEEP | BULLISH | 07/15/22 | $110.00 | $1.3M | 43 | 746 |
| TSM | CALL | SWEEP | BULLISH | 04/14/22 | $125.00 | $754.8K | 3.2K | 1.4K |
| TSM | CALL | TRADE | NEUTRAL | 05/20/22 | $100.00 | $747.0K | 74 | 2.1K |
| TSM | CALL | TRADE | BEARISH | 05/20/22 | $100.00 | $499.0K | 74 | 2.7K |
| TSM | CALL | SWEEP | BEARISH | 05/20/22 | $100.00 | $487.0K | 74 | 5.3K |
Where Is Taiwan Semiconductor Standing Right Now?
- With a volume of 5,097,549, the price of TSM is up 0.79% at $123.28.
- RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
- Next earnings are expected to be released in 65 days.
What The Experts Say On Taiwan Semiconductor:
- Atlantic Equities upgraded its action to Overweight with a price target of $170
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you are already an options trader or would like to get started, head on over to Benzinga Pro. Benzinga Pro gives you up-to-date news and analytics to empower your investing and trading strategy.
