Unusual Options Activity for Taiwan Semiconductor (TSM) on March 5

Recently, a notable trend has emerged among investors regarding Taiwan Semiconductor Manufacturing Company (TSM). There has been a noticeable bearish sentiment from high-value traders, which is something that all retail traders should pay attention to.

This observation was captured today through our analysis of publicly available options trades. The specifics of these transactions indicate that significant capital is being deployed in a manner that could signal important developments ahead for TSM.

While it's unclear whether these trades are being executed by institutional investors or wealthy individual traders, one thing is certain: when large sums of money are moved in a stock like TSM, it often implies that some insiders or informed traders expect notable changes.

Today, our options scanner at Benzinga identified 9 intriguing trades linked to Taiwan Semiconductor, revealing activity that falls outside of typical trading patterns.

To provide some context, among the traders engaged in these options activities, about 44% have taken a bearish position, while only 33% remain bullish. This divergence in sentiment is certainly worth noting.

Insights on Options Activity and Price Targets

From the trades we analyzed, we found that out of the unusual options identified, there were 4 put options (which signify a bearish outlook) totaling approximately $264,322, and 5 call options (indicating a bullish sentiment) totaling around $254,678. This balance of options suggests that while some investors are anticipating a decline, others are still holding onto optimism for a potential rise.

Looking at the price targets set by these trades, it seems that informed investors are focusing on a price range for TSM between $177.5 and $230.0 over the past three months. This projection indicates a mix of confidence and caution regarding the company's future performance.

Volume and Open Interest Overview

In the current trading environment, the average open interest for TSM options stands at approximately 5,983, with a total volume hitting around 1,815. The accompanying data visualizations illustrate the movement of both call and put options across high-value trades that have occurred within the identified price corridor. This gives insight into how traders are reacting to market conditions in the last month.

Recent Options Trade Summary

Symbol	PUT/CALL	Trade Type	Sentiment	Expiration Date	Ask	Bid	Price	Strike Price	Total Trade Value	Open Interest	Volume
TSM	PUT	SWEEP	BULLISH	03/21/25	$6.75	$6.65	$6.65	$180.00	$108.3K	9.8K	421
TSM	PUT	SWEEP	BEARISH	12/19/25	$24.95	$24.9	$24.95	$185.00	$84.8K	121	43
TSM	CALL	SWEEP	NEUTRAL	03/14/25	$5.2	$5.05	$5.1	$185.00	$70.3K	658	198
TSM	CALL	SWEEP	BEARISH	03/21/25	$4.1	$4.0	$4.0	$190.00	$65.2K	6.4K	707
TSM	CALL	TRADE	BEARISH	04/17/25	$10.95	$10.85	$10.85	$185.00	$54.2K	16.0K	40

Company Overview: Taiwan Semiconductor

Taiwan Semiconductor Manufacturing Company (TSMC) is recognized as the largest dedicated chip foundry globally, holding over 60% of the market share. Established in 1987, TSMC has grown significantly and became publicly traded in the United States in 1997. The company's innovative technology and production scale have enabled it to maintain strong operating margins, even within a competitive market. TSMC collaborates with leading technology companies like Apple, AMD, and Nvidia, providing crucial semiconductor manufacturing capabilities. TSMC employs more than 73,000 individuals, highlighting its role as a significant employer.

Current Status of Taiwan Semiconductor

• Today, TSM's stock traded at a volume of 8,086,561 units, showing a price increase of 1.87% to reach $183.36.
• Relative Strength Index (RSI) indicators suggest that the stock may be nearing an oversold condition.
• The next earnings report is anticipated within 43 days.

Analyst Ratings

In recent weeks, an analyst from Needham revised their rating for TSM, adjusting it to Buy with an average target price set at $225. This reflects a cautious optimism in the context of market conditions.

Overall, options trading carries more risks than regular stock trading, but with greater potential for profit. Experienced traders usually manage risk by continuously educating themselves, adjusting their trades, and monitoring several market indicators.

For those interested in staying updated on options activities for Taiwan Semiconductor, real-time alerts on options trades can provide valuable insights into market movements.

options, investors, trading