Schwab Commentator Recommends Bullish Options Strategy for Taiwan Semi (TSM)

Larry Ramer

Thu, Apr 10, 2025, 8:06 AM 2 min read

Tom White, an expert astatine the Schwab Network, unveiled a bullish options commercialized involving the world's largest spot manufacturer, Taiwan Semi (TSM).

Meanwhile, Rick Ducat, different commentator connected the network, presented a method investigation of TSM stock.

A Bullish Options Strategy

In bid to exploit TSM's precocious implied volatility, White recommends buying May 16 calls with a $155 onslaught terms and selling April 17 calls with a $170 onslaught price.

Traders who usage this strategy volition wage $8.50 of nett premiums and person a break-even terms of $160, White estimated.

A Technical Analysis of TSM

TSM's "uptrend was broken" during the market's caller selloff, arsenic the banal "progressed into a falling wedge," Ducat said. However, the shares did stabilize precocious astatine their August debased adjacent $133.50 and re-entered their longtime range.

The "key area" that they request to surpass successful bid to execute "a breakout to the upside" is $171, according to Ducat.

The Recent Price Action of TSM Stock

In the past month, the shares person fallen 11%, portion they person sunk 26% successful the past 3 months. But TSM has gained 4% successful the past year.

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