TSM Iron Condor — Sep 18, 2026
Trade Setup
Current Stock Price
$404.25
Entry Price
$535.00
Target Price
$267.50
Stop Loss
$1070.00
Expiration
Sep 18, 2026
Suggested Contracts
1
Strike Details
Sell 370P / Buy 360P / Sell 450C / Buy 460C
Risk / Reward
Max Loss
$465.00
Max Profit
$535.00
Analysis
TSM (Taiwan Semiconductor Manufacturing Company Ltd.) presents a iron condor opportunity with elevated implied volatility. IV Rank 59. IV 4157.0% trades 898.0pp above 30-day HV (3259.0%). This setup favors net premium sellers.
Sell the $370 put and the $450 call (both ~15-30 delta), each protected by a long wing. The position profits if TSM closes between the breakevens at expiration. Underlying ~$404.25, 49 DTE. Max profit $535 per contract, max loss $465, 115.0% return on risk, 51% POP. Breakevens at $364.65 and $455.35.
Management: take profit at ~50% of max profit ($268). Cut at 2x credit ($1070 loss). If short strike is breached with > 14 DTE, consider rolling out for a credit. Close before expiration week to avoid gamma risk.
Setup Instructions
Underlying: TSM @ ~$404.25 Expiration: Sep 18, 2026 (49 DTE) Net credit (entry): ~$535.00 per spread Legs:
- Sell TSM Sep 18, 2026 $370 Put (delta -0.28, mid $13.00)
- Buy TSM Sep 18, 2026 $360 Put (delta -0.23, mid $10.07)
- Sell TSM Sep 18, 2026 $450 Call (delta 0.30, mid $12.35)
- Buy TSM Sep 18, 2026 $460 Call (delta 0.25, mid $9.93)
Use limit orders at the mid or slightly worse. Verify bid-ask spread (currently ~5.5% of mid) before sending.
Management Plan
Take profit at 50% of max profit ($268). Cut loss if position reaches 2x credit received ($1070 loss). Roll if tested with > 14 DTE remaining.