IBM's Options: A Look at What the Big Money is Thinking

Author: Benzinga Insights | May 03, 2024 02:01pm

Financial giants have made a conspicuous bullish move on IBM. Our analysis of options history for IBM (NYSE:IBM) revealed 15 unusual trades.

Delving into the details, we found 53% of traders were bullish, while 40% showed bearish tendencies. Out of all the trades we spotted, 2 were puts, with a value of $89,145, and 13 were calls, valued at $1,123,079.

Predicted Price Range

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $130.0 and $180.0 for IBM, spanning the last three months.

Volume & Open Interest Trends

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

This data can help you track the liquidity and interest for IBM's options for a given strike price.

Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of IBM's whale activity within a strike price range from $130.0 to $180.0 in the last 30 days.

IBM Call and Put Volume: 30-Day Overview

Noteworthy Options Activity:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
IBM	CALL	TRADE	BULLISH	06/21/24	$11.75	$11.4	$11.75	$155.00	$176.2K	1.9K	0
IBM	CALL	SWEEP	BEARISH	06/21/24	$12.25	$11.65	$11.75	$155.00	$141.0K	1.9K	450
IBM	CALL	TRADE	BULLISH	01/17/25	$7.75	$7.65	$7.75	$180.00	$130.9K	2.3K	31
IBM	CALL	TRADE	BULLISH	06/21/24	$11.75	$11.65	$11.75	$155.00	$117.5K	1.9K	250
IBM	CALL	TRADE	BULLISH	06/07/24	$11.1	$10.6	$11.1	$155.00	$111.0K	141	100

About IBM

IBM looks to be a part of every aspect of an enterprise's IT needs. The company primarily sells software, IT services, consulting, and hardware. IBM operates in 175 countries and employs approximately 350,000 people. The company has a robust roster of 80,000 business partners to service 5,200 clients—which includes 95% of all Fortune 500. While IBM is a B2B company, IBM's outward impact is substantial. For example, IBM manages 90% of all credit card transactions globally and is responsible for 50% of all wireless connections in the world.

Having examined the options trading patterns of IBM, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

Where Is IBM Standing Right Now?

• Currently trading with a volume of 1,471,322, the IBM's price is up by 0.81%, now at $166.02.
• RSI readings suggest the stock is currently may be oversold.
• Anticipated earnings release is in 75 days.

What The Experts Say On IBM

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $163.0.

• An analyst from Wedbush persists with their Neutral rating on IBM, maintaining a target price of $160.
• Maintaining their stance, an analyst from Jefferies continues to hold a Hold rating for IBM, targeting a price of $190.
• Maintaining their stance, an analyst from UBS continues to hold a Sell rating for IBM, targeting a price of $130.
• An analyst from Exane BNP Paribas has revised its rating downward to Underperform, adjusting the price target to $145.
• Maintaining their stance, an analyst from BMO Capital continues to hold a Market Perform rating for IBM, targeting a price of $190.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for IBM, Benzinga Pro gives you real-time options trades alerts.

Posted In: IBM