Behind the Scenes of IBM's Latest Options Trends

Author: Benzinga Insights | May 15, 2024 02:16pm

Financial giants have made a conspicuous bullish move on IBM. Our analysis of options history for IBM (NYSE:IBM) revealed 11 unusual trades.

Delving into the details, we found 54% of traders were bullish, while 36% showed bearish tendencies. Out of all the trades we spotted, 4 were puts, with a value of $141,091, and 7 were calls, valued at $312,102.

Projected Price Targets

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $135.0 and $180.0 for IBM, spanning the last three months.

Insights into Volume & Open Interest

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in IBM's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to IBM's substantial trades, within a strike price spectrum from $135.0 to $180.0 over the preceding 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	SWEEP	BULLISH	05/24/24	$1.04	$0.97	$1.02	$170.00	$90.4K	1.5K	982
IBM	PUT	SWEEP	BEARISH	05/24/24	$4.85	$4.7	$4.77	$172.50	$47.9K	14	100
IBM	CALL	TRADE	BULLISH	08/16/24	$7.15	$7.05	$7.15	$170.00	$40.7K	0	75
IBM	CALL	TRADE	NEUTRAL	06/20/25	$39.3	$38.3	$38.87	$135.00	$38.8K	27	20
IBM	CALL	TRADE	BEARISH	06/20/25	$40.55	$37.6	$38.77	$135.00	$38.7K	27	10

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.

After a thorough review of the options trading surrounding IBM, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Where Is IBM Standing Right Now?

• With a volume of 2,184,435, the price of IBM is up 0.23% at $167.74.
• RSI indicators hint that the underlying stock may be oversold.
• Next earnings are expected to be released in 63 days.

Expert Opinions on IBM

In the last month, 5 experts released ratings on this stock with an average target price of $162.0.

• Consistent in their evaluation, an analyst from Stifel keeps a Buy rating on IBM with a target price of $190.
• In a cautious move, an analyst from Exane BNP Paribas downgraded its rating to Underperform, setting a price target of $145.
• Maintaining their stance, an analyst from UBS continues to hold a Sell rating for IBM, targeting a price of $130.
• Maintaining their stance, an analyst from JP Morgan continues to hold a Neutral rating for IBM, targeting a price of $185.
• An analyst from Wedbush persists with their Neutral rating on IBM, maintaining a target price of $160.

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