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Best Covered Call Strategy for TSM Stock Over 14 Days — Up to 2.48% Yield

Taiwan Semiconductor Manufacturing Company Limited · TSM · Covered Call · Updated Aug 26, 2026

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Best covered call strategy for TSM stock over 14 days: sell a ~0.25–0.30 delta call in the 7–21 DTE window. Example contracts below for Taiwan Semiconductor Manufacturing Company Limited (TSM) reach up to 2.48% annualized yield (2.05% avg on top strikes)—compare strike, premium, and IV before opening the screener. Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides various wafer fabrication processes, such as processes to manufacture complementary metal- oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others.

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Best covered call strategy for TSM stock over 14 days

Target ~0.25–0.30 delta in the 7–21 DTE window. Top contracts reach up to 2.48% annualized yield (2.05% avg). Example: $420 strike, 9 DTE, 1.90% yield at ~0.45 delta. Full comparison is in the table below.

Elevated implied volatilityTop IV stocks →

Top Covered Calls (14–30 day)

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Top Covered Calls (14–30 day) — strike, expiration, DTE, delta, premium, yield, and contract score
StrikeExpirationDTEDeltaPremiumYieldScoreAction
$420.00Sep 490.45$8.001.90%43Open
$420.00Sep 11160.47$10.402.48%42Open
$425.00Sep 11160.40$8.331.96%40Open
$417.50Sep 490.49$9.132.19%38Open
$427.50Sep 11160.37$7.451.74%34Open

Additional medium-term contracts (22–45 DTE)

Additional medium-term contracts (22–45 DTE) — strike, expiration, DTE, delta, premium, yield, and contract score
StrikeExpirationDTEDeltaPremiumYieldScoreAction
$420.00Sep 18230.48$12.603.00%45Open
$420.00Sep 25300.49$14.653.49%39Open
$420.00Oct 2370.50$16.804.00%38Open

Key Metrics

Financial Performance

Market Cap.$2.2 Trillion
Stock Price$417.59
P/E Ratio36.9
SectorTechnology
IndustrySemiconductors
52W High$479.00
52W Low$223.70
50-Day SMA$425.88
200-Day SMA$360.20
Analyst ConsensusBuy
Next EarningsOct 15, 2026

Covered calls snapshot

Avg. Premium Yield2.05%
Max Premium Yield2.48%
Avg. Implied Vol.34.4%
Peak Implied Vol.35.6%
Data UpdatedAug 26, 2026, 2:07 AM UTC

Insights

Top pick

Best covered calls for Taiwan Semiconductor Manufacturing Company Limited (TSM): $420.00 strike expiring Sep 4, 2026, 1.90% yield.

Short-term opportunities

Taiwan Semiconductor Manufacturing Company Limited (TSM) has competitive covered calls expiring within ~14–21 days—use the 14-day screener filter to compare.

Implied volatility

Average IV for Taiwan Semiconductor Manufacturing Company Limited (TSM) is 34.4% (elevated)— favorable for premium sellers.

Weekly vs monthly yield

Best ≤14 DTE yield: 2.19%. Best >14 DTE: 2.48%.

How to use this page

  1. Review Taiwan Semiconductor Manufacturing Company Limited (TSM) fundamentals Check stock price, sector, and technicals in the company snapshot, then compare top contract cards.
  2. Open the screener for Taiwan Semiconductor Manufacturing Company Limited (TSM) Open our Covered Calls screener with TSM pre-loaded and optional 14-day or 30-day DTE filters.
  3. Compare and execute Refine yield, delta, and IV in the screener, then place the trade in your broker.

Analysis

Our analysis of Taiwan Semiconductor Manufacturing Company Limited (TSM) covered calls shows average premium yield of 2.05% and peaks at 2.48%. Average implied volatility is 34.4% (peak 35.6%), indicating elevated volatility for premium sellers. Taiwan Semiconductor Manufacturing Company Limited (TSM) operates in the Technology sector within the Semiconductors industry. Use the tables below to compare strike, DTE, and delta before opening the full screener.

FAQ

What is the best covered call strategy for TSM stock over 14 days?

For a 14-day covered call on TSM, target ~0.25–0.30 delta strikes in the 7–21 DTE window with annualized yield up to 2.48% (2.05% avg on top contracts). Example from today’s chain: $420.00 strike, 16 DTE, 2.48% annualized yield at ~0.47 delta. Compare strike, premium, delta, and IV in the table above, then open the covered call screener for live filters.

What are the best covered calls for Taiwan Semiconductor Manufacturing Company Limited (TSM)?

The best covered calls for Taiwan Semiconductor Manufacturing Company Limited (TSM) reach up to 2.48% annualized yield (2.05% average on top strikes). This page emphasizes roughly 14–21 day expirations plus 30-day style windows. Compare strike, DTE, delta, and IV in the tables below, then open the screener for full filters.

What are Taiwan Semiconductor Manufacturing Company Limited (TSM)'s fundamentals for covered calls?

For Taiwan Semiconductor Manufacturing Company Limited (TSM), key fundamentals include last price $417.59, P/E 36.9, market cap $2.2 Trillion, Technology sector, analyst consensus Buy. Fundamentals help you judge assignment risk and premium richness before selling options.

How do I find covered calls for Taiwan Semiconductor Manufacturing Company Limited (TSM)?

Use our Covered Calls screener with Taiwan Semiconductor Manufacturing Company Limited (TSM) pre-loaded: filter by premium yield, DTE (14-day or 30-day windows), delta, and implied volatility (34.4% avg IV on this page).

What is the average premium yield for Taiwan Semiconductor Manufacturing Company Limited (TSM) covered calls?

Average premium yield for Taiwan Semiconductor Manufacturing Company Limited (TSM) covered calls is 2.05%, with top contracts up to 2.48%. Yields move with strike, expiration, and IV (avg 34.4%, peak 35.6%).

Is Taiwan Semiconductor Manufacturing Company Limited (TSM) a good stock for covered calls?

Taiwan Semiconductor Manufacturing Company Limited (TSM) offers covered calls with yields up to 2.48%. It is in Technology. IV is elevated—weigh premium income vs. assignment and earnings risk.

What expiration dates are available for Taiwan Semiconductor Manufacturing Company Limited (TSM) covered calls?

Taiwan Semiconductor Manufacturing Company Limited (TSM) has short-dated contracts (~7–21 DTE) and medium-term expirations (~22–45 DTE) on this page. Use DTE chips to jump to the screener with matching expiration filters.

How does implied volatility affect Taiwan Semiconductor Manufacturing Company Limited (TSM) covered calls?

IV drives option premiums: Taiwan Semiconductor Manufacturing Company Limited (TSM) averages 34.4% IV (peak 35.6%). Higher IV can mean richer premiums but more price swing—balance yield with delta and DTE.

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Not financial advice. Options involve risk. Data from live market feeds and may change.