IBM Options Trading: A Deep Dive into Market Sentiment

High-rolling investors have positioned themselves bullish on IBM IBM, and it's important for retail traders to take note. \This activity came to our attention today through Benzinga's tracking of publicly available options data. The identities of these investors are uncertain, but such a significant move in IBM often signals that someone has privileged information.

Today, Benzinga's options scanner spotted 12 options trades for IBM. This is not a typical pattern.

The sentiment among these major traders is split, with 50% bullish and 50% bearish. Among all the options we identified, there was one put, amounting to $38,160, and 11 calls, totaling $646,031.

Expected Price Movements

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $110.0 to $185.0 for IBM over the last 3 months.

Insights into Volume & Open Interest

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 $110.0 to $185.0, over the past month.

IBM Call and Put Volume: 30-Day Overview

Biggest Options Spotted:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
IBM CALL TRADE BEARISH 06/21/24 $19.65 $19.4 $19.5 $150.00 $97.5K 1.8K 262
IBM CALL TRADE BEARISH 06/21/24 $19.7 $19.4 $19.5 $150.00 $97.5K 1.8K 162
IBM CALL TRADE BEARISH 06/21/24 $19.7 $19.4 $19.5 $150.00 $97.5K 1.8K 112
IBM CALL SWEEP BEARISH 06/21/24 $19.75 $19.5 $19.5 $150.00 $97.5K 1.8K 12
IBM CALL TRADE BEARISH 06/21/24 $19.65 $19.45 $19.5 $150.00 $56.5K 1.8K 291

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.

Current Position of IBM

  • Trading volume stands at 1,428,017, with IBM's price up by 0.46%, positioned at $169.15.
  • RSI indicators show the stock to be may be approaching oversold.
  • Earnings announcement expected in 70 days.

Professional Analyst Ratings for IBM

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $169.8.

  • An analyst from UBS has decided to maintain their Sell rating on IBM, which currently sits at a price target of $130.
  • 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 Jefferies continues to hold a Hold rating for IBM, targeting a price of $210.
  • Consistent in their evaluation, an analyst from JP Morgan keeps a Neutral rating on IBM with a target price of $185.
  • Consistent in their evaluation, an analyst from Morgan Stanley keeps a Equal-Weight rating on IBM with a target price of $179.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest IBM options trades with real-time alerts from Benzinga Pro.

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Date of Trade
Strike Price
Posted In: OptionsMarketsBZI-UOA
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