Quantchabot has detected a new Bull Call Spread trade opportunity for TAIWAN SEMICONDUCTOR (TSM) for the 27-Jun-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
TSM was recently trading at $189.05 and has an implied volatility of 33.68% for this period. Based on an analysis of the options available for TSM expiring on 27-Jun-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $189.59-$213.83 at expiration. In this scenario, the average linear return for the trade would be 10.96%.
Big 7.10% Change: After closing the last trading session at $176.52, TAIWAN SEMICONDUCTOR opened today at $187.28 and has reached a high of $189.17.
Trade approach: A movement as big as 7.10% is a significantly 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 $189.05 on 27-Jun-2025. 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 $183.95 on 27-Jun-2025. Based on our risk-neutral analysis, there is a 59.92% 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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