Check Out What Whales Are Doing With IBM

Author: Benzinga Insights | May 31, 2024 04:02pm

Investors with a lot of money to spend have taken a bearish stance on IBM (NYSE:IBM).

And retail traders should know.

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

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with IBM, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 10 uncommon options trades for IBM.

This isn't normal.

The overall sentiment of these big-money traders is split between 20% bullish and 60%, bearish.

Out of all of the special options we uncovered, 5 are puts, for a total amount of $287,660, and 5 are calls, for a total amount of $234,898.

Predicted Price Range

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $150.0 to $190.0 for IBM over the recent three months.

Insights into Volume & Open Interest

In today's trading context, the average open interest for options of IBM stands at 1140.22, with a total volume reaching 1,433.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in IBM, situated within the strike price corridor from $150.0 to $190.0, throughout the last 30 days.

IBM Option Volume And Open Interest Over Last 30 Days

Largest Options Trades Observed:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
IBM	PUT	SWEEP	BEARISH	06/21/24	$15.7	$15.15	$15.5	$180.00	$93.0K	834	62
IBM	CALL	TRADE	BULLISH	07/19/24	$5.1	$5.05	$5.1	$165.00	$86.6K	851	584
IBM	PUT	SWEEP	BEARISH	01/17/25	$5.7	$5.6	$5.7	$150.00	$57.0K	2.2K	231
IBM	PUT	SWEEP	BULLISH	01/17/25	$5.8	$5.6	$5.65	$150.00	$56.5K	2.2K	131
IBM	CALL	SWEEP	BEARISH	06/21/24	$5.2	$5.05	$5.05	$162.50	$50.5K	21	0

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.

Present Market Standing of IBM

• Currently trading with a volume of 1,687,812, the IBM's price is down by -0.1%, now at $165.47.
• RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
• Anticipated earnings release is in 47 days.

What Analysts Are Saying About IBM

In the last month, 4 experts released ratings on this stock with an average target price of $183.75.

• An analyst from RBC Capital has revised its rating downward to Outperform, adjusting the price target to $200.
• Maintaining their stance, an analyst from Stifel continues to hold a Buy rating for IBM, targeting a price of $190.
• An analyst from Exane BNP Paribas downgraded its action to Underperform with a price target of $145.
• An analyst from RBC Capital downgraded its action to Outperform with a price target of $200.

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