Understanding Taiwan Semiconductor's Unusual Options Activity

By Benzinga Insights5 days ago


Taiwan Semiconductor (NYSE:TSM) shares experienced unusual options activity on Thursday. The stock price moved up to $122.65 following the option alert.

  • Sentiment: BEARISH
  • Option Type: SWEEP
  • Trade Type: PUT
  • Expiration Date: 2021-04-16
  • Strike Price: $120.00
  • Volume: 443
  • Open Interest: 12722

Three Ways Options Activity Is ‘Unusual'

Extraordinarily large volume (compared to historical averages) is one indication of unusual options market activity. Volume refers to the total number of contracts traded over a given time period when discussing options market activity. The number of unsettled contracts that have been traded, but not yet closed, is called open interest. These contracts are not yet closed because a buyer has not purchased the contract, or a seller has not sold it.

The trading of a contract with an expiration date in the distant future is another sign of ...

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