Taiwan Semiconductor is propping up chip and tech stocks today after earnings
Taiwan Semiconductor (NYSE:TSM) stock is driving the chip sector higher today, and near the top of the Nasdaq-100 Index (NDX). The semiconductor company reported third-quarter profit that topped analyst estimates. Taiwan Semiconductor also expects annual revenue growth in the last three months of the year, with artificial intelligence (AI) driving demand.
The shares are up 20% to trade at $207.94, on track for their best single-session gain since May 2023. TSM -- a Schaeffer's Top Pick for 2024 -- earlier hit a record high of $212.50, and is now 100% higher year-to-date.
Options traders have been betting bearishly. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), TSM's 10-day put/call volume ratio ranks in 90th percentile of its annual range. Echoing this, the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.44 sits two percentage points from an annual high, indicating short-term options traders have rarely preferred puts more in the last 12 months.
Today marks a shift back to calls. At last check, over 359,000 calls have changed hands, volume that's 12 times the average intraday amount. The October 210 call is the most popular, as is the 220-strike in the same series, with new positions being sold to open at the latter.