Better Times for Taiwan Semi (TSM)?
by Houghton and Atkeson 08/08/08
We know what is happening in China, but what is happening in Taiwan Semiconductor (TSM)?
Daily average options volume in Taiwan Semiconductor is 600 contracts. Today they have traded 14,000 -- 23 times usual -- and 13,000 were the TSM Oct 10 Calls (TSMJB) alone.
Today, TSM, the world's top contract chip maker, said its July sales edged up 7%. May not sound great, but when compared to United Microelectronics (UMC), its smaller rival (which saw July sales down 15%), it is. Times are tough, but market participants are betting that the stock and the options will be higher by October.
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