TSMTaiwan Semiconductor Manufacturing Company Ltd.
Options Analysis Report
Market Cap $2.13T|NYSE
● 2026-08-24$410.12
NEUTRAL
Analysis: 2026-08-21 EOD data
1Y +74.1%YTD +28.3%7D -0.8%
Options Vol
102,019
30D
Implied Move
±9.3%
IV Rank
5%
TSM Options Overview
Mixed signals. No clear edge detected.
REWARDS
RISK ANALYSIS
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TSM Gamma Walls
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Value
Is IV priced right?
8.3
ExpensiveCheap
Measures whether options are cheap, fair, or rich relative to historical and peer
IV
levels.Risk Checks7/9 checks passed
IV Rank
≤35%IV Rank 49.3% — elevated vs history
IV/HV Ratio
<1.05xIV/HV 0.85x — IV ≤ HV
Sector Relative≤50%
Sector percentile 7% — below sector median
Term Structure
<1.1xFront/Back 0.80x — contango
Skew Normal
<1.25xPut/Call IV 1.16x — elevated
Absolute IV
<80%ATM IV 33.0% — normal range
Spread-Adjusted Value
<80%Effective IV 41.6% (ATM 33.0% + spread 4.3% + bias) — excellent value
Execution Efficiency
<3.0%Total drag 11.85% (spread 4.30% + slippage 7.55%) — high friction
Vega Efficiency
≥5.0Vega efficiency 107.44 (vega 46.201 / spread 4.30%) — efficient
Sentiment
Bullish or bearish?
4.6
BearishBullish
Analyzes
put/call ratios
, open interest skew
, and flow direction to determine market bias.Risk ChecksBearish - Weak signal (Conviction: -12%, Raw: -9%)
Flow Direction
|net sentiment| ≥25%Conviction-weighted: -12% (bearish) — Raw: -9%
OI Skew Magnitude
≥15%|OI skew| 5.3% — balanced
Volume-OI Alignment
Same sign, |vol skew| ≥10%Vol skew -2.1%, OI skew -5.3% — weak (same direction)
Conviction Quality
≥2/3 conditions0-DTE 0%, far-OTM 15%, avg DTE 30
OI Momentum
|change| ≥3%OI change +0.0% (5d) — stable
Smart Money Flow
|weighted flow| ≥20%ITM: -45%, ATM: -2%, OTM: -10% — strong bearish (ITM/ATM aligned)
Sector Relative≤40% or ≥60%
Sector P/C percentile 81% — very bearish vs sector
Activity
Unusual activity?
4.0
QuietActive
Detects volume surges,
block trades
, and unusual options activity that may signal moves.Risk Checks2/8 checks passed
Volume Surge
≥1.5xVolume 0.7x avg — normal
Turnover Rate
≥15%Vol/OI 4.7% — normal turnover
Multi-Day Persistence
≥2 days1 day(s) elevated — may be one-day event
OI Build
≥5%OI change +5.2% (5d) — building
Sector Relative≥60%
Sector activity percentile 62% — active vs sector
Trade Quality
≥30%Large trade volume 25% — mixed
Execution Urgency
≥60%Aggressive execution 32% — patient
Flow Conviction
≥30Conviction -12 (bearish) — mixed
Liquidity
Can I trade efficiently?
6.9
IlliquidLiquid
Evaluates
bid-ask spreads
, volume depth, and open interest for trade execution quality.Risk Checks5/8 checks passed
Tradeable Spread
≤5.0%Spread 4.3% — acceptable
Adequate OI
≥10,000OI 2,192,150 — deep
Active Volume
≥500Volume 102,019/day — active
Reasonable Cost
≤$0.50$0.21 to cross — cheap
Strike Coverage
≥5 strikes1 liquid strikes — limited options
Sector Relative≤40%
Sector spread percentile 45% — neutral vs sector
Order Book Depth
≥100 contractsDepth 105.1 contracts (bid:47.3 ask:57.8) — adequate
Execution Quality
<1.0%Avg slippage 7.55% — poor
Timing
Is now a good time?
7.2
RiskyFavorable
Considers earnings proximity,
time decay
, and event calendar for optimal entry timing.Risk Checks6/9 checks passed
Term Structure Clarity
|slope| ≥5%Slope -20.0% — contango
IV Percentile Clarity
<30 or >70IV percentile 49% — neutral
Event Detection
≥10pts kinkIV kink -4.4pts — no clear event
Theta/Vega Clarity
<0.5 or >2.0θ/ν ratio 163.20 — favors income trades
Expiration Distribution
≥3 expirations5 liquid expirations — flexible
Event Risk
≥60% (safe)safe window: No earnings detected
Spread Momentum
<1.2 ratioSpread ratio 1.00x — stable
Flow Momentum
≥25% strength + ≥50% consistencyFlow -12% @ 56% consistency — unclear
Smart Money Timing
≥40 composite scoreScore 55 (ITM 20% + inst 25%) — moderate institutional
Directional Strategy Fit
Option Buyers
Long Calls6.6
bullishIV cheap, mixed flow
Long Puts6.9
bearishIV cheap, mixed flow
Premium Sellers
Cash-Secured Put4.6
bullishIV too cheap, mixed flow
Covered Call4.9
bearishIV too cheap, mixed flow
For educational purposes only. Not investment advice.