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

Quantchabot has detected a new Bull Call Spread trade opportunity for TAIWAN SEMICONDUCTOR (TSM) for the 12-Jul-2024 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

TSM was recently trading at $168.05 and has an implied volatility of 33.85% for this period. Based on an analysis of the options available for TSM expiring on 12-Jul-2024, there is a 34.19% likelihood that the underlying will close within the analyzed range of $168.47-$186.43 at expiration. In this scenario, the average linear return for the trade would be 10.51%.

52 week high: TAIWAN SEMICONDUCTOR recently reached a new 52-week high at $168.17. TSM had traded in the range $84.02-$164.70 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 $168.05 on 12-Jul-2024. 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 $163.20 on 12-Jul-2024. Based on our risk-neutral analysis, there is a 62.32% 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.






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