TSMTaiwan Semiconductor Manufacturing Company Ltd.
Options Analysis Report
Market Cap $2.07T|NYSE
● 2026-05-15$417.72
NEUTRAL
Analysis: 2026-05-14 EOD data
1Y +115.1%YTD +30.7%7D +1.5%
Options Vol
215,112
30D
Implied Move
±13.4%
IV Rank
73%
TSM Options Overview
unusual activity. Conditions favor premium sellers.
REWARDS
RISK ANALYSIS
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Value
Is IV priced right?
5.8
ExpensiveCheap
Measures whether options are cheap, fair, or rich relative to historical and peer
IV
levels.Risk Checks6/9 checks passed
IV Rank
≤35%IV Rank 58.2% — elevated vs history
IV/HV Ratio
<1.05xIV/HV 1.16x — IV premium over HV
Sector Relative≤50%
Sector percentile 20% — below sector median
Term Structure
<1.1xFront/Back 1.05x — flat
Skew Normal
<1.25xPut/Call IV 1.16x — elevated
Absolute IV
<80%ATM IV 48.3% — normal range
Spread-Adjusted Value
<80%Effective IV 57.6% (ATM 48.3% + spread 4.7% + bias) — good value
Execution Efficiency
<3.0%Total drag 8.63% (spread 4.67% + slippage 3.96%) — high friction
Vega Efficiency
≥5.0Vega efficiency 71.71 (vega 33.489 / spread 4.67%) — efficient
Sentiment
Bullish or bearish?
5.7
BearishBullish
Analyzes
put/call ratios
, open interest skew
, and flow direction to determine market bias.Risk ChecksBullish - Moderate signal (Conviction: +12%, Raw: +11%)
Flow Direction
|net sentiment| ≥25%Conviction-weighted: +12% (bullish) — Raw: +11%
OI Skew Magnitude
≥15%|OI skew| 13.1% — balanced
Volume-OI Alignment
Same sign, |vol skew| ≥10%Vol skew +19.9%, OI skew -13.1% — divergent (opposite)
Conviction Quality
≥2/3 conditions0-DTE 39%, far-OTM 15%, avg DTE 30
OI Momentum
|change| ≥3%OI change +0.0% (5d) — stable
Smart Money Flow
|weighted flow| ≥20%ITM: +15%, ATM: +8%, OTM: +13% — bullish (ITM/ATM aligned)
Sector Relative≤40% or ≥60%
Sector P/C percentile 70% — very bearish vs sector
Activity
Unusual activity?
5.2
QuietActive
Detects volume surges,
block trades
, and unusual options activity that may signal moves.Risk Checks2/9 checks passed
Volume Surge
≥1.5xVolume 1.4x avg — normal
Turnover Rate
≥15%Vol/OI 11.1% — normal turnover
Strike Concentration
≥60%Top 3 strikes = 50% — dispersed
Multi-Day Persistence
≥2 days1 day(s) elevated — may be one-day event
OI Build
≥5%OI change +11.4% (5d) — building
Sector Relative≥60%
Sector activity percentile 80% — active vs sector
Trade Quality
≥30%Large trade volume 21% — mixed
Execution Urgency
≥60%Aggressive execution 39% — patient
Flow Conviction
≥30Conviction +12 (bullish) — mixed
Liquidity
Can I trade efficiently?
6.7
IlliquidLiquid
Evaluates
bid-ask spreads
, volume depth, and open interest for trade execution quality.Risk Checks5/8 checks passed
Tradeable Spread
≤5.0%Spread 4.7% — acceptable
Adequate OI
≥10,000OI 1,946,649 — deep
Active Volume
≥500Volume 215,112/day — active
Reasonable Cost
≤$0.50$0.23 to cross — cheap
Strike Coverage
≥5 strikes3 liquid strikes — limited options
Sector Relative≤40%
Sector spread percentile 56% — neutral vs sector
Order Book Depth
≥100 contractsDepth 174.8 contracts (bid:93.3 ask:81.5) — adequate
Execution Quality
<1.0%Avg slippage 3.96% — poor
Timing
Is now a good time?
7.2
RiskyFavorable
Considers earnings proximity,
time decay
, and event calendar for optimal entry timing.Risk Checks5/9 checks passed
Term Structure Clarity
|slope| ≥5%Slope +4.7% — flat/unclear
IV Percentile Clarity
<30 or >70IV percentile 58% — neutral
Event Detection
≥10pts kinkIV kink 3.0pts — no clear event
Theta/Vega Clarity
<0.5 or >2.0θ/ν ratio 62.18 — 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 51 (ITM 20% + inst 21%) — moderate institutional
Directional Strategy Fit
Option Buyers
Long Calls6.1
bullishIV fair, mixed flow
Long Puts5.6
bearishIV fair, mixed flow
Premium Sellers
Cash-Secured Put5.7
bullishIV fair, mixed flow
Covered Call5.2
bearishIV fair, mixed flow
For educational purposes only. Not investment advice.