This Is What Whales Are Betting On IBM

This Is What Whales Are Betting On IBM

 

Someone with a lot of money to spend has taken a bearish stance on IBM IBM.

And retail traders should know.

We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.

Whether this is an institution or just a wealthy individual, we don't know. But when something this big happens with IBM, it often means somebody knows something is about to happen.

Today, Benzinga's options scanner spotted 16 options trades for IBM.

This isn't normal.

The overall sentiment of these big-money traders is split between 37% bullish and 62%, bearish.

Out of all of the options we uncovered, there was 1 put, for a total amount of $73,440, and 15, calls, for a total amount of $841,037..

What's The Price Target?

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $100.0 to $150.0 for IBM over the last 3 months.

Volume & Open Interest Development

In terms of liquidity and interest, the mean open interest for IBM options trades today is 3113.0 with a total volume of 8,672.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for IBM's big money trades within a strike price range of $100.0 to $150.0 over the last 30 days.

IBM Option Volume And Open Interest Over Last 30 Days

Biggest Options Spotted:

 

Symbol PUT/CALL Trade Type Sentiment Exp. Date Strike Price Total Trade Price Open Interest Volume
IBM CALL TRADE NEUTRAL 10/21/22 $120.00 $193.6K 233 104
IBM CALL SWEEP BEARISH 08/19/22 $138.00 $77.0K 10.4K 1.3K
IBM PUT SWEEP BULLISH 10/21/22 $150.00 $73.4K 40 54
IBM CALL SWEEP BEARISH 10/21/22 $135.00 $60.7K 2.2K 279
IBM CALL SWEEP BULLISH 10/21/22 $145.00 $59.0K 4.0K 638

Where Is IBM Standing Right Now?

  • With a volume of 2,541,316, the price of IBM is up 0.92% at $137.82.
  • RSI indicators hint that the underlying stock may be overbought.
  • Next earnings are expected to be released in 63 days.

What The Experts Say On IBM:

  • Morgan Stanley has decided to maintain their Overweight rating on IBM, which currently sits at a price target of $155.
  • BMO Capital has decided to maintain their Market Perform rating on IBM, which currently sits at a price target of $148.
  • Credit Suisse has decided to maintain their Outperform rating on IBM, which currently sits at a price target of $156.

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: BZI-UOAOptionsMarkets