IBM Options Trading: A Deep Dive into Market Sentiment

Author: Benzinga Insights | May 29, 2024 01:02pm

Financial giants have made a conspicuous bullish move on IBM. Our analysis of options history for IBM (NYSE:IBM) revealed 10 unusual trades.

Delving into the details, we found 60% of traders were bullish, while 30% showed bearish tendencies. Out of all the trades we spotted, 3 were puts, with a value of $97,670, and 7 were calls, valued at $514,385.

Projected Price Targets

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $130.0 to $220.0 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 1476.44 with a total volume of 1,484.00.

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 $130.0 to $220.0 over the last 30 days.

IBM Call and Put Volume: 30-Day Overview

Largest Options Trades Observed:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
IBM	CALL	TRADE	BEARISH	03/21/25	$4.35	$4.25	$4.25	$200.00	$212.5K	290	500
IBM	CALL	TRADE	BULLISH	01/17/25	$9.4	$8.45	$9.2	$175.00	$91.9K	1.5K	0
IBM	CALL	SWEEP	BULLISH	07/19/24	$3.9	$3.85	$3.9	$170.00	$61.2K	4.9K	391
IBM	CALL	SWEEP	BEARISH	01/17/25	$40.0	$39.5	$39.5	$130.00	$51.3K	822	13
IBM	CALL	TRADE	NEUTRAL	01/17/25	$8.2	$8.0	$8.1	$180.00	$40.5K	2.7K	179

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.

Following our analysis of the options activities associated with IBM, we pivot to a closer look at the company's own performance.

IBM's Current Market Status

• Currently trading with a volume of 1,712,034, the IBM's price is down by -1.07%, now at $167.85.
• RSI readings suggest the stock is currently may be approaching overbought.
• Anticipated earnings release is in 49 days.

What The Experts Say On IBM

A total of 4 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $183.75.

• Reflecting concerns, an analyst from Exane BNP Paribas lowers its rating to Underperform with a new price target of $145.
• An analyst from RBC Capital has revised its rating downward to Outperform, adjusting the price target to $200.
• An analyst from Stifel has decided to maintain their Buy rating on IBM, which currently sits at a price target of $190.
• An analyst from RBC Capital has revised its rating downward to Outperform, adjusting the price target to $200.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for IBM with Benzinga Pro for real-time alerts.

Posted In: IBM