Investors in Taiwan Semiconductor Manufacturing Co., Ltd. (TSM) now have access to new options contracts expiring in June 2028. Notably, a put contract with a $430 strike price currently has a bid of $105, allowing sellers to secure a potential cost basis of $325 per share, versus the current trading price of $433.25. The odds of this put option expiring worthless are estimated at 68%, which could yield a 24.42% return if successfully executed.
Additionally, a call contract at the $520 strike price carries a bid of $107. If investors purchase shares at the current price and sell this call, they would be committing to a potential total return of 44.72% if the stock is called away by expiration. Analysts estimate a 42% chance of this call expiring worthless, allowing investors to retain both their shares and premium.
Implied volatility for the put and call contracts stands at 54% and 55%, respectively, while the trailing twelve-month volatility for TSM is calculated at 39%.
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