Reported 8 months ago
Goldman Sachs Group Inc. suggests a zero-cost alternative to the popular TSMC arbitrage trade that involves using options to bet on shrinking premium on TSMC's American Depositary Receipts. This alternative trade allows investors to cap potential losses while waiting for the premium to revert back to its longer-term average, as TSMC's ADRs have reached their highest price relative to Taiwan shares since 2009 due to the US AI frenzy. Demand for TSMC's ADRs options has been rising as the US stock surged this year.
Source: YAHOO