Taiwan Semiconductor Stock Options
| TSM Stock | USD 208.61 7.03 3.49% |
Taiwan Semiconductor's latest option contracts expiring on January 10th 2025 are carrying combined implied volatility of 0.5 with a put-to-call open interest ratio of 1.13 over 43 outstanding agreements suggesting investors are buying more puts than calls on contracts expiring on January 10th 2025. The total put volume is at 202, with calls trading at the volume of 126. This yields a 1.6 put-to-call volume ratio.
Open Interest Against January 10th 2025 Option Contracts
2025-01-10
The chart above shows Taiwan Semiconductor's distribution of open interest by maturity on contracts that have not yet been settled. The area between the two highest points is the projection of the price at expiration. Taiwan Semiconductor's open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Taiwan Semiconductor's option, there is no secondary market available for investors to trade.
Taiwan Semiconductor Maximum Pain Price Across 2025-01-10 Option Contracts
Max pain occurs when Taiwan Semiconductor's market makers reach a net positive position across all Taiwan Semiconductor's options at a strike price where option holders stand to lose the most money. By contrast, Taiwan Semiconductor's option sellers may reap the most after selling more options than buying, causing them to expire worthless.
In The Money vs. Out of Money Option Contracts on Taiwan Semiconductor
Analyzing Taiwan Semiconductor's in-the-money options over time can help investors to take a profitable long position in Taiwan Semiconductor regardless of its overall volatility. This is especially true when Taiwan Semiconductor's options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money Taiwan Semiconductor's options could be used as guardians of the underlying stock as they move almost dollar for dollar with Taiwan Semiconductor's stock while costing only a fraction of its price.
Please note that buying 'in-the-money' options on Taiwan Semiconductor lessens the impact of time decay, as they carry both intrinsic and time value. So, even if Taiwan Semiconductor's value remains static through the expiration date, the investor can sell to close an 'in-the-money' option to avoid a potential loss. However, in-the-money Taiwan Semiconductor contracts are usually more expensive to enter than their out-of-the-money counterparts. So keep in mind that while the payoffs on an in-the-money trade can be high, the investors could ultimately experience a more consequential loss if Taiwan Stock moves the wrong way.
Taiwan Semiconductor In The Money Call Balance
When Taiwan Semiconductor's strike price is surpassing the current stock price, the option contract against Taiwan Semiconductor Manufacturing stock is said to be in the money. When it comes to buying Taiwan Semiconductor's options that are 'In the Money' or 'Out of the Money', the choice depends on your outlook for the underlying security, financial situation, and what you are trying to achieve.
While 'out-of-the-money' option contracts written on Taiwan Semiconductor Manufacturing are typically viewed as the more aggressive, there are potential upsides to purchasing these types of options contracts. For one, the cost to buy an 'Out of the Money' option is lower than the cost to buy an 'In the Money' option. This cost-benefit is due to the fact that at the time of the purchase, 'Out of the Money' contracts have no intrinsic value. So, while the potential for a 100% loss is more significant, the cost and risk to enter the trade are lower.
Taiwan Current Options Market Mood
Taiwan Semiconductor's open interest and total value indicators provide investors with the necessary information to digest the overall options buildup for its expiring contracts. In addition, it helps Taiwan Stock's traders understand whether a recent fall or rise in the market is unreasonable and if the time has come to take contrarian positions. These ratios are calculated based on options trading volumes and current open interest.
Put-to-Call Open Interest
Put-to-Call Volume
It is estimated that an average options trader loses somewhere between 80% to 90% of the time. Using current Taiwan Semiconductor's option volume and open interest to make an investment decision is considered a contrarian-sentiment measure that can be utilized in many timing strategies in both derivative and spot marketplace.
Rule 16 of the current Taiwan contract
Base on the Rule 16, the options market is currently suggesting that Taiwan Semiconductor Manufacturing will have an average daily up or down price movement of about 0.0313% per day over the life of the 2025-01-10 option contract. With Taiwan Semiconductor trading at USD 208.61, that is roughly USD 0.0652. If you think that the market is fully incorporating Taiwan Semiconductor's daily price movement you should consider buying Taiwan Semiconductor Manufacturing options at the current volatility level of 0.5%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
Taiwan |
Purchasing Taiwan Semiconductor options can give investors a meaningful hedge against losses and, therefore, could be used conservatively to decrease the volatility of your portfolio. However, many options could also amount to little more than gambling, significantly enhancing your overall portfolio risk. One simple example of these aggressive strategies is the sale of "uncovered" Taiwan calls. Remember, the seller must deliver Taiwan Semiconductor Manufacturing stock to the call owner when a call is exercised.
Taiwan Semiconductor Option Chain
When Taiwan Semiconductor's strike price is surpassing the current stock price, the option contract against Taiwan Semiconductor Manufacturing stock is said to be in the money. When it comes to buying options that are ITM or OTM, the choice depends on your outlook for the underlying security, financial situation, and what you are trying to achieve.
Taiwan Semiconductor's option chain is a display of a range of information that helps investors for ways to trade options on Taiwan. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Taiwan. It also shows strike prices and maturity days for a Taiwan Semiconductor against a given expiration period. The table below combines all the option information in the form of a chain but before you use it, remember that it entails significant risk and it is not for everyone. | Open Int | Strike Price | Current Spread | Last Price | |||
Call | TSM250110C00100000 | 0 | 100.0 | 83.25 - 87.05 | 83.25 | In |
Call | TSM250110C00105000 | 0 | 105.0 | 78.3 - 82.1 | 78.3 | In |
Call | TSM250110C00110000 | 0 | 110.0 | 73.35 - 77.15 | 73.35 | In |
Call | TSM250110C00115000 | 0 | 115.0 | 68.45 - 72.2 | 68.45 | In |
Call | TSM250110C00120000 | 0 | 120.0 | 64.2 - 67.2 | 64.2 | In |
Call | TSM250110C00125000 | 0 | 125.0 | 58.55 - 62.25 | 58.55 | In |
Call | TSM250110C00130000 | 0 | 130.0 | 54.25 - 57.3 | 54.25 | In |
Call | TSM250110C00135000 | 0 | 135.0 | 48.7 - 52.35 | 48.7 | In |
Call | TSM250110C00140000 | 0 | 140.0 | 44.05 - 47.4 | 44.05 | In |
Call | TSM250110C00145000 | 0 | 145.0 | 39.6 - 42.5 | 39.6 | In |
Call | TSM250110C00160000 | 5 | 160.0 | 25.95 - 27.4 | 21.96 | In |
Call | TSM250110C00170000 | 5 | 170.0 | 17.45 - 19.0 | 16.18 | In |
Call | TSM250110C00175000 | 6 | 175.0 | 13.8 - 15.3 | 14.74 | In |
Call | TSM250110C00180000 | 138 | 180.0 | 10.75 - 11.8 | 11.45 | In |
Call | TSM250110C00185000 | 38 | 185.0 | 8.05 - 8.5 | 8.55 | Out |
Call | TSM250110C00190000 | 3 | 190.0 | 5.75 - 7.4 | 7.05 | Out |
Call | TSM250110C00195000 | 9 | 195.0 | 4.25 - 4.6 | 4.65 | Out |
Call | TSM250110C00200000 | 14 | 200.0 | 3.0 - 3.35 | 3.39 | Out |
Call | TSM250110C00205000 | 9 | 205.0 | 2.08 - 2.57 | 2.5 | Out |
Call | TSM250110C00210000 | 14 | 210.0 | 1.22 - 1.69 | 1.76 | Out |
Call | TSM250110C00215000 | 2 | 215.0 | 0.92 - 1.39 | 1.25 | Out |
Call | TSM250110C00220000 | 25 | 220.0 | 0.43 - 1.06 | 0.69 | Out |
Call | TSM250110C00225000 | 2 | 225.0 | 0.57 - 1.03 | 0.69 | Out |
Call | TSM250110C00235000 | 2 | 235.0 | 0.31 - 0.76 | 0.25 | Out |
Put | TSM250110P00100000 | 0 | 100.0 | 0.0 - 2.21 | 2.21 | |
Put | TSM250110P00105000 | 0 | 105.0 | 0.0 - 2.22 | 2.22 | |
Put | TSM250110P00110000 | 0 | 110.0 | 0.0 - 2.24 | 2.24 | |
Put | TSM250110P00115000 | 0 | 115.0 | 0.0 - 0.36 | 0.36 | |
Put | TSM250110P00120000 | 0 | 120.0 | 0.01 - 0.58 | 0.01 | |
Put | TSM250110P00125000 | 0 | 125.0 | 0.0 - 0.6 | 0.16 | |
Put | TSM250110P00130000 | 1 | 130.0 | 0.0 - 0.42 | 0.27 | Out |
Put | TSM250110P00135000 | 0 | 135.0 | 0.01 - 0.65 | 0.01 | |
Put | TSM250110P00140000 | 0 | 140.0 | 0.0 - 0.89 | 0.89 | |
Put | TSM250110P00145000 | 0 | 145.0 | 0.3 - 0.55 | 0.3 | |
Put | TSM250110P00150000 | 1 | 150.0 | 0.4 - 1.06 | 0.4 | Out |
Put | TSM250110P00155000 | 9 | 155.0 | 0.59 - 1.85 | 0.58 | Out |
Put | TSM250110P00160000 | 10 | 160.0 | 0.93 - 1.18 | 0.95 | Out |
Put | TSM250110P00165000 | 25 | 165.0 | 1.52 - 1.7 | 1.47 | Out |
Put | TSM250110P00170000 | 121 | 170.0 | 2.25 - 2.87 | 2.41 | Out |
Put | TSM250110P00175000 | 14 | 175.0 | 3.65 - 4.3 | 3.71 | Out |
Put | TSM250110P00180000 | 122 | 180.0 | 5.15 - 5.75 | 5.3 | Out |
Put | TSM250110P00185000 | 3 | 185.0 | 7.55 - 8.35 | 7.3 | Out |
Put | TSM250110P00195000 | 1 | 195.0 | 13.75 - 15.25 | 16.8 | In |
Taiwan Semiconductor Selling And Marketing Expenses Over Time
Selling And Marketing Expenses |
| Timeline |
Taiwan Total Stockholder Equity
Total Stockholder Equity |
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Taiwan Semiconductor Corporate Directors
| Peter Bonfield | Independent Director | Profile | |
| Stan Shih | Independent Director | Profile | |
| Michael Splinter | Independent Director | Profile | |
| KokChoo Chen | Independent Director | Profile |
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Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Taiwan Semiconductor. If investors know Taiwan will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Taiwan Semiconductor listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.541 | Dividend Share 15.5 | Earnings Share 6.13 | Revenue Per Share | Quarterly Revenue Growth 0.39 |
The market value of Taiwan Semiconductor is measured differently than its book value, which is the value of Taiwan that is recorded on the company's balance sheet. Investors also form their own opinion of Taiwan Semiconductor's value that differs from its market value or its book value, called intrinsic value, which is Taiwan Semiconductor's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Taiwan Semiconductor's market value can be influenced by many factors that don't directly affect Taiwan Semiconductor's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Taiwan Semiconductor's value and its price as these two are different measures arrived at by different means. Investors typically determine if Taiwan Semiconductor is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Taiwan Semiconductor's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.