Options traders were pricing Taiwan Semiconductor Manufacturing Co. Shares for a move of about 4% around the company’s third-quarter earnings release, implying a range of roughly $412 to $446 by the end of the week. The quarterly results were scheduled for release before U.S. Markets opened Thursday, Oct. 15, with investors already aware that revenue had climbed sharply during the period.
The $430 strike held 7,633 open call contracts and 6,010 open put contracts, making it the chain’s immediate focal point. Put positions were concentrated below the stock, including 8,771 contracts at $420, 8,109 at $360, 7,242 at $300 and 7,459 at $280. The largest put position was at $270, with 10,397 contracts, while higher-strike puts included 6,036 contracts at $440 and 4,838 at $450.
Call open interest formed a series of potential upside barriers above the current share price. The chain showed 4,468 contracts at $440, 9,505 at $450, 5,700 at $460 and 6,718 at $470. Trading was especially active at the $450 and $470 strikes, where Wednesday volume reached 4,781 and 6,545 contracts, respectively.
Additional call concentrations appeared at $520 and $540, with 2,681 and 2,648 contracts. In market terms, the distribution mapped out substantial positioning on both sides of the expected move, with the heaviest upside concentration well above the stock’s Wednesday level.
The earnings release was therefore expected to put greater emphasis on profit margins, earnings and management’s view of demand for chips used in artificial-intelligence applications.