Traders Are Bullish On This Semiconductor Stock

Shares of Taiwan Semiconductor Mfg. Co. Ltd. (NYSE: TSM) Wednesday climbed almost 4%, ahead of its first-quarter earnings report.

On CNBC's "Options Action," Tony Zhang said the stock traded more than three times its average daily volume on Wednesday.

“The options market is implying a pretty sizable move of about 4.7% versus the average we’ve seen over the last eight quarters of only 3.5%, he added.

Check out other semiconductor names making big moves in the premarket.

An institutional trader bought 6,000 of the April 28 weekly 109 calls at an average price of 97 cents per contract as well as 3,500 of the April 28 weekly 110 calls at 99 cents per contract, Zhang mentioned. The trader expects Taiwan Semiconductor’s stock to rise by at least 8% by April 28 expiration.