TSM options — covered call & cash-secured put yields
Taiwan Semiconductor · Technology
Top 5 covered-call strikes for TSM
Ranked by annualized yield. Updated every 5 minutes during market hours.
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Top 5 cash-secured puts for TSM
Sub-spot strikes ranked by annualized return on capital.
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About TSM options
Taiwan Semiconductor (TSM) is a Technology listed company with elevated implied volatility — richer premiums offset by higher assignment risk. TSM pays a small 1.4% dividend. Dividend-capture early-assignment risk is minimal but worth tracking.
For wheel-strategy traders, TSM is a workable wheel candidate. The elevated implied volatility — richer premiums offset by higher assignment risk means cash-secured puts collect meaningful premium, and the underlying business profile (Technology) makes it a name many income sellers would be comfortable being assigned at the right strike.
For income-strategy traders, the TSM option chain typically supports both conservative (delta around 0.20) and aggressive (delta around 0.35) premium-selling setups. The Live Opportunities ranking above scans every active expiration and surfaces the highest-yielding contracts by annualized return.
Income strategies on TSM
- Covered calls on TSM — if you own TSM shares. New to the strategy? Read the full covered-calls guide first.
- Cash-secured puts on TSM — if you have cash to deploy and would be comfortable owning TSM. See the cash-secured puts guide for mechanics.
- TSM wheel strategy — for repeating CSP → assignment → covered call → called-away cycles. The complete wheel-strategy guide covers stock selection and cycle math.
Related tickers
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Frequently asked questions
What are the best covered-call strikes for TSM right now?
The Top 5 list above ranks every covered-call strike across every upcoming expiration on TSM by annualized yield, refreshed every 5 minutes. Click any strike to open the calculator pre-filled with that contract.
Is TSM a good wheel-strategy stock?
For wheel-strategy traders, TSM is a workable wheel candidate. The elevated implied volatility — richer premiums offset by higher assignment risk means cash-secured puts collect meaningful premium, and the underlying business profile (Technology) makes it a name many income sellers would be comfortable being assigned at the right strike.
What delta should I sell on TSM?
Most income sellers target a 0.20 to 0.35 delta strike. Conservative sellers stay near 0.20 (lower yield, lower assignment risk). Aggressive sellers go to 0.35 (higher yield, higher assignment risk). With elevated implied volatility — richer premiums offset by higher assignment risk, TSM works well across this range.
Does TSM pay a dividend, and does it affect my covered call?
TSM pays a small 1.4% dividend. Dividend-capture early-assignment risk is minimal but worth tracking.