IBM Unusual Options Activity

Author: Benzinga Insights | August 13, 2024 03:15pm

Investors with a lot of money to spend have taken a bullish 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 14 uncommon options trades for IBM.

This isn't normal.

The overall sentiment of these big-money traders is split between 50% bullish and 35%, bearish.

Out of all of the special options we uncovered, 8 are puts, for a total amount of $382,767, and 6 are calls, for a total amount of $239,122.

Projected Price Targets

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $100.0 to $200.0 for IBM during the past quarter.

Volume & Open Interest Development

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

This data can help you track the liquidity and interest for IBM's options for a given strike price.

Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of IBM's whale activity within a strike price range from $100.0 to $200.0 in the last 30 days.

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	BULLISH	09/20/24	$36.2	$34.85	$36.2	$155.00	$90.5K	29	26
IBM	PUT	SWEEP	BEARISH	10/18/24	$8.0	$7.85	$7.99	$195.00	$63.9K	574	82
IBM	PUT	TRADE	BEARISH	10/18/24	$8.0	$7.8	$7.92	$195.00	$59.4K	574	157
IBM	PUT	SWEEP	BEARISH	10/18/24	$12.25	$10.7	$11.21	$200.00	$54.0K	468	85
IBM	PUT	TRADE	BEARISH	10/18/24	$8.0	$7.8	$7.95	$195.00	$50.0K	574	317

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

• With a volume of 1,134,527, the price of IBM is up 0.7% at $190.81.
• RSI indicators hint that the underlying stock may be approaching overbought.
• Next earnings are expected to be released in 71 days.

What Analysts Are Saying About IBM

4 market experts have recently issued ratings for this stock, with a consensus target price of $206.5.

• An analyst from Jefferies persists with their Hold rating on IBM, maintaining a target price of $200.
• An analyst from RBC Capital persists with their Outperform rating on IBM, maintaining a target price of $211.
• Maintaining their stance, an analyst from BMO Capital continues to hold a Market Perform rating for IBM, targeting a price of $210.
• An analyst from Stifel has decided to maintain their Buy rating on IBM, which currently sits at a price target of $205.

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