Behind the Scenes of IBM's Latest Options Trends

Investors with a lot of money to spend have taken a bullish stance on IBM 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 21 uncommon options trades for IBM.

This isn't normal.

The overall sentiment of these big-money traders is split between 57% bullish and 14%, bearish.

Out of all of the special options we uncovered, 12 are puts, for a total amount of $781,114, and 9 are calls, for a total amount of $804,588.

Predicted Price Range

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $120.0 to $255.0 for IBM over the last 3 months.

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 $120.0 to $255.0 in the last 30 days.

IBM 30-Day Option Volume & Interest Snapshot

Noteworthy Options Activity:

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.

Current Position of IBM

• With a volume of 679,651, the price of IBM is down -1.17% at $209.43.
• RSI indicators hint that the underlying stock may be oversold.
• Next earnings are expected to be released in 71 days.

Expert Opinions on IBM

In the last month, 5 experts released ratings on this stock with an average target price of $233.2.

Unusual Options Activity Detected: Smart Money on the Move

Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * An analyst from RBC Capital has revised its rating downward to Outperform, adjusting the price target to $250. * Maintaining their stance, an analyst from Stifel continues to hold a Buy rating for IBM, targeting a price of $246. * Maintaining their stance, an analyst from Morgan Stanley continues to hold a Equal-Weight rating for IBM, targeting a price of $217. * Consistent in their evaluation, an analyst from Jefferies keeps a Hold rating on IBM with a target price of $245. * Consistent in their evaluation, an analyst from Morgan Stanley keeps a Equal-Weight rating on IBM with a target price of $208.

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.