A Closer Look at IBM's Options Market Dynamics

Author: Benzinga Insights | June 14, 2024 11:16am

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 8 uncommon options trades for IBM.

This isn't normal.

The overall sentiment of these big-money traders is split between 25% bullish and 37%, bearish.

Out of all of the special options we uncovered, 4 are puts, for a total amount of $242,399, and 4 are calls, for a total amount of $120,238.

Projected Price Targets

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $145.0 to $170.0 for IBM over the recent three months.

Analyzing 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 $145.0 to $170.0, over the past month.

IBM Option Activity Analysis: Last 30 Days

Noteworthy Options Activity:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
IBM	PUT	SWEEP	BEARISH	10/18/24	$9.55	$9.5	$9.55	$170.00	$83.0K	597	39
IBM	PUT	SWEEP	NEUTRAL	01/17/25	$12.0	$11.5	$12.0	$170.00	$73.2K	4.8K	10
IBM	PUT	SWEEP	BEARISH	01/17/25	$7.5	$7.5	$7.5	$160.00	$60.0K	1.2K	0
IBM	CALL	TRADE	BULLISH	01/17/25	$24.3	$22.9	$24.1	$150.00	$31.3K	2.7K	10
IBM	CALL	TRADE	BULLISH	07/19/24	$6.25	$6.1	$6.19	$165.00	$30.9K	1.6K	77

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.

IBM's Current Market Status

• Currently trading with a volume of 569,001, the IBM's price is down by -0.68%, now at $167.97.
• RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
• Anticipated earnings release is in 33 days.

What The Experts Say On IBM

3 market experts have recently issued ratings for this stock, with a consensus target price of $196.66666666666666.

• Consistent in their evaluation, an analyst from Stifel keeps a Buy rating on IBM with a target price of $190.
• Reflecting concerns, an analyst from RBC Capital lowers its rating to Outperform with a new price target of $200.
• 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