52-Week High Alert: Trading today’s movement in TAIWAN SEMICONDUCTOR $TSM

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Quantchabot has detected a promising Bull Put Spread trade opportunity for TAIWAN SEMICONDUCTOR (TSM) for the 14-Apr-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TSM was recently trading at $141.71 and has an implied volatility of 35.96% for this period. Based on an analysis of the options available for TSM expiring on 14-Apr-2022, there is a 34.13% likelihood that the underlying will close within the analyzed range of $141.34-$169.02 at expiration. In this scenario, the average linear return for the trade would be 73.24%.

52 week high: TAIWAN SEMICONDUCTOR recently reached a new 52-week high at $143.88. TSM had traded in the range $107.58-$142.19 over the past year.

Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if TSM maintains its current direction and does not revert back to pricing on the bearish side of $141.71 on 14-Apr-2022. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bullish strategy, the trade would be profitable if TAIWAN SEMICONDUCTOR closes at or above $140.55 on 14-Apr-2022. Based on our risk-neutral analysis, there is a 51.25% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.