Spotlight on IBM: Analyzing the Surge in Options Activity

Whales with a lot of money to spend have taken a noticeably bearish stance on IBM.

Looking at options history for IBM IBM we detected 23 trades.

If we consider the specifics of each trade, it is accurate to state that 47% of the investors opened trades with bullish expectations and 52% with bearish.

From the overall spotted trades, 3 are puts, for a total amount of $126,300 and 20, calls, for a total amount of $1,065,534.

Expected Price Movements

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 $200.0 for IBM, spanning the last three months.

Volume & Open Interest Development

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for IBM's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across IBM's significant trades, within a strike price range of $135.0 to $200.0, over the past month.

IBM Call and Put Volume: 30-Day Overview

Significant Options Trades Detected:

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.

In light of the recent options history for IBM, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Present Market Standing of IBM

• With a trading volume of 2,238,948, the price of IBM is up by 1.51%, reaching $186.44.
• Current RSI values indicate that the stock is may be overbought.
• Next earnings report is scheduled for 76 days from now.

What Analysts Are Saying About IBM

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $183.2.

• In a positive move, an analyst from Evercore ISI Group has upgraded their rating to Outperform and adjusted the price target to $200.
• Consistent in their evaluation, an analyst from BMO Capital keeps a Market Perform rating on IBM with a target price of $210.
• Consistent in their evaluation, an analyst from Stifel keeps a Buy rating on IBM with a target price of $183.
• Reflecting concerns, an analyst from Societe Generale lowers its rating to Sell with a new price target of $143.
• Reflecting concerns, an analyst from Jefferies lowers its rating to Hold with a new price target of $180.

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.