Taiwan Semiconductor Manufacturing Company (TSMC) is set to release its fourth-quarter earnings report early Thursday, bringing attention to the chipmaker and its top customers like Apple, Nvidia, Broadcom, and Marvell Technology. The company’s shares have been volatile, gapping up 5.5% in January after reporting a 57.8% year-over-year surge in December revenue.
JPMorgan Chase and Goldman Sachs, both near their 50-day moving averages, are also expected to report earnings early this week. JPMorgan is in the top-10 holdings of the Financial Select Sector SPDR ETF (XLF), with its shares holding up well despite a recent sharp drop through the 50-day line on December 18.
The yield curve has steepened again, and rising interest rates are expected to boost financial stocks like JPMorgan and Goldman Sachs. However, other factors like stubbornly high inflation this year may pose a challenge.
Options traders can identify new bull runs with IBD’s ETF market strategy, which involves using call options to buy stocks at a predetermined price without taking too much risk. For JPMorgan, buying a slightly out-of-the-money weekly call option with a 245 strike price came with a premium of around $4 per contract, or 1.6% of the underlying stock price.
As TSMC’s earnings report approaches, investors should consider using options trading strategies to profit from potential market moves.
Source: https://www.investors.com/research/earnings-preview/jpmorgan-stock-goldman-sachs-tsmc-earnings