To The Moon

Just now, January 15, 2026-$Taiwan Semiconductor Manufacturing (TSM) $Announced today that for the fourth quarter ended December 31, 2025, the company's consolidated revenue reachedNT $1.04609 trillion, net profitNT $505.74 billionDiluted earnings per shareNT $19.50(Yield per unit of ADR$3.14）。

On a year-on-year basis, revenue growth in the quarter20.5%, both net profit and diluted earnings per share increased35.0%； QoQ Q3 2025, revenue growth5.7%, net profit growth11.8%。 All financial data are based onTaiwan Financial Accounting Standards(TIFRS), prepared on a consolidated basis.

In U.S. dollars, fourth-quarter revenue was$33.73 billion, year-on-year growth25.5%, month-on-month growth1.9%。

Gross profit margin for the quarter was62.3%, operating profit margin is54.0%, net profit margin is48.3%。

In terms of wafer revenue composition, the fourth quarter3nm processThe proportion of shipments reached28%，5nm processProportion35%，7nm processProportion14%。 Represented by 7nm and more advanced processesAdvanced technology, together contributed to the total wafer revenue77%。

Jake Lai, senior analyst at Counterpoint Research, said that AI demand is still very strong, driving chip demand in the entire server industry, and predicts that 2026 will be another "breakthrough year" for AI server demand. As TSMC's ongoing 2nm capacity expansion and the investment of new production lines have brought revenue to the company, coupled with the continued expansion of advanced packaging technology... TSMC is expected to maintain a strong performance in 2026. However, demand for chips related to consumer electronics such as smartphones and PCs could be impacted by current memory shortages and rising prices, he added.

TSM Bull Put Spread Options Strategy

1. Strategy structure

Investors inTSM (TSMC)OfPUT OptionsBuild aBull Put Spread Bull Put SpreadStrategy. The strategy passesSell Higher Strike Price Put, and simultaneouslyBuy Put with Lower Strike PriceConstitute, belonging toLimited benefits, limited risksThe strategy of being on the side of the bull or shock is on the side of the bull.

(1) Sell with higher execution price Put (main source of income)

• Sell a copyPut with strike price K ₂ = 320

• Premium received$5.8/share

This Put is closer to the current stock price and is strategicMain sources of premium。 as long asTSM expiration price ≥ 320, the Put will be completely invalid, and investors can retain all premium rights.

(2) Buy a lower execution price Put (risk protection)

• Buy a copyPut with strike price K ₁ = 315

• Payment premium$3.8/share

The role of this Put isWhen TSM sees a big declineHedge risks, therebyLimit the maximum lossSo that the strategic risk is capped when the position is opened.

(3) Put-side net income (per share)

Net premium = Sell Put − Buy Put

= 5.8 − 3.8 =$2.0/share

Initial net income

on account of1 lot of options = 100 shares：

• Net premium (per share): $2.0

• Initial net income (per contract): = 2.0 × 100 =$200/contract

The initial net income is the bull market put spread strategyMaximum potential profit。

3. Maximum profit

WhenTSM expiration price ≥ 320Time:

• Both 315 Put and 320 Put are extra-price

• Both options lapse

Investors get maximum profits:

• Per share: $2.0

• Per contract:$200

4. Maximum loss

The largest loss occurs whenPut spread fully triggeredIn the case of, that is, TSM has dropped significantly.

Strike spread width: = 320 − 315 =$5

Maximum loss (per share): = Strike spread − Net premium = 5 − 2.0 =$3.0/share

Maximum loss (per contract): = 3.0 × 100 =$300/contract

Conditions of occurrence:

• TSM expiration price ≤ 315

5. Break-even point

There is only one break-even point for bull put spreads:

Breakeven Price = Sell Put Strike Price − Net premium = 320 − 2.0 =318

Maturity judgment rules:

• TSM > 318 → earnings

• TSM = 318 → No profit, no loss

• TSM < 318 → Loss

6. Risk and return characteristics

• Maximum benefit:$200/contract (limited)

• Maximum loss:$300/contract (limited)

• Profit-loss ratio: gain: loss ≈ 200: 300 ≈1: 1.5

7. Strategic characteristics and applicable situations

Strategy Characteristics

• Bullish or volatile bullish strategy

• TSM is not required to rise, as long asNot significantly falling

• Receive time value by selling Put

• The maximum return and maximum risk can be determined when opening a position

• Compared with selling Put alone, the risk is significantly reduced

Applicable situations

When investors judge:

• TSM remains strong or range-bound in the short term

• Fall below before expiration315-320 intervalLow probability of

• Hope inDefine the upper limit of riskObtain stable premium income on the premise of