Unusual Options Activity In Taiwan Semiconductor Manufacturing Company

Unusual Options Activity In Taiwan Semiconductor Manufacturing Company
December 29 15:56 2018

Taiwan Semiconductor Manufacturing Company Limited (TSM), together with its subsidiaries, engages in manufacturing, selling, packaging, testing, and computer-aided design of integrated circuits and other semiconductor devices. The company manufactures masks and electronic spare parts; researches, develops, designs, manufactures, sells, packages, and tests color filters; and offers customer and engineering support services.

TSM has been involved with chip design since the 1980s and today produces chips for some of the largest clients in the world.

The company produces chips for Apple and fortunately or unfortunately gets 20% of its sales from Apple.  Well, we know what has happen to Apple’s stock in recent months as well.

TSMC fortunately or unfortunately manufactures nearly all of NVIDIA’s graphics processors, with the exceptions of NVIDIA’s lowest-end products.
Well, we know what has happen to NVIDIA’s stock in recent months as well.

Which may explain the unusual options activity betting against TSM on Friday. Smart Money thinks TSM will be trading below $37 by February 15th.


On the monthly chart, price made a double top, but also broke the up trend line.

But on the weekly chart, price has been basing for the last eight weeks, with support at $35. When you add the price of the option to the strike price, the options are only profitable if price breaches $35.30.

The thing about Smart Money is they have the inside scope, they move the Markets, so whether the chart supports their foot prints or not, I always want to trade with them and enjoy the ride.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

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I'm a retail investor like most of you and learning everyday, but I have been educated and trained to identified the Smart Money on the charts to pick up whatever crumbs they leave behind.

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