Okay kiddo, let me explain this to you in simple words. There is a big company called Taiwan Semiconductor that makes tiny parts for things like phones and computers. Some people who have lots of money are betting whether the price of these tiny parts will go up or down. They use something called options to do this, which are like special tickets that give them the right to buy or sell the tiny parts at a certain price. Right now, more people are betting that the price will go down than up, so they are buying more of these special tickets for selling the tiny parts. The people who watch all this think the price of the tiny parts will be between $100 and $160 in the future. Read from source...
- The title of the article is misleading and sensationalized, as it implies that there is a hidden or complex meaning behind TSM's options activity, while in reality, it is just a reflection of the market sentiment and expectations. A more accurate title could be "TSM Options Activity Reflects Market Sentiment"
- The article does not provide any clear context or background information about TSM's business, industry, competitors, or recent performance, which are essential to understand the significance of the options activity. For example, it does not mention that TSM is the world's largest semiconductor foundry and a key player in the global chip shortage, or that it has been consistently outperforming its rivals and posting strong earnings growth.
- The article relies heavily on technical analysis and numerical data, such as trades, open interest, volume, and price range, without explaining how they are relevant or useful to interpret the options activity. For example, it does not explain what open interest is, how it measures liquidity and demand, or how it differs from volume. It also does not provide any charts or graphs to visualize the data or support the claims.
- The article uses vague and subjective terms, such as "whales", "bearish", "bullish", without defining them or explaining how they are derived. For example, it does not clarify what constitutes a whale, how many trades or contracts are needed to qualify, or how the options activity of these investors differs from others. It also does not provide any evidence or sources for the alleged stance of these whales, such as their trading history, motives, or expectations.
- The article makes several unsubstantiated and questionable statements, such as "if we consider the specifics of each trade", without providing any details or examples of these trades. It also claims that 53% of investors opened trades with bearish expectations, without specifying what those expectations are, how they are measured, or how they relate to the options activity.
- The article ends with a predicted price range of $100.0 and $160.0 for TSM, which seems arbitrary and unsupported by any analysis or reasoning. It does not explain why these prices are relevant, significant, or probable, or what factors could influence them in the future.
Overall, the article is poorly written, lacks credibility, objectivity, and coherence, and fails to deliver valuable insights or information about TSM's options activity or its implications for investors.