On CNBC’s “Options Action,” Tony Zhang said he saw significant options activity in Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) during the session on Monday. The options volume was fairly average, but puts outpaced calls by a fair amount as 50% more puts were traded in Taiwan Semiconductor on Monday.
One trader bought around 7,000 contracts of the July 2, $111 puts for $1.17. These puts are expiring in just nine trading days so this is a trader who laid out almost $800,000 in premium to bet that Taiwan Semiconductor is going to decline around 3.7% over the next nine trading days, said Zhang.
