A Closer Look at IBM's Options Market Dynamics

Investors with a lot of money to spend have taken a bearish 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 10 uncommon options trades for IBM.

This isn't normal.

The overall sentiment of these big-money traders is split between 40% bullish and 50%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $101,145, and 8 are calls, for a total amount of $626,690.

Expected Price Movements

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $160.0 to $265.0 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 1245.43, with a total volume reaching 1,892.00. 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 $160.0 to $265.0, throughout the last 30 days.

IBM Option Activity Analysis: Last 30 Days

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 300,000 people. The company has a robust roster of business partners to service its clients, which include 95% of all Fortune 500 companies. Primary products include its mainframes, Red Hat software, transaction processing software, and IT consulting.

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 194,155, the IBM's price is down by -0.51%, now at $253.39.
• RSI readings suggest the stock is currently may be overbought.
• Anticipated earnings release is in 70 days.

Expert Opinions on IBM

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $273.6.

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 Oppenheimer has revised its rating downward to Outperform, adjusting the price target to $320. * Maintaining their stance, an analyst from BMO Capital continues to hold a Market Perform rating for IBM, targeting a price of $280. * An analyst from Morgan Stanley has decided to maintain their Equal-Weight rating on IBM, which currently sits at a price target of $228. * Consistent in their evaluation, an analyst from B of A Securities keeps a Buy rating on IBM with a target price of $270. * An analyst from Jefferies has decided to maintain their Hold rating on IBM, which currently sits at a price target of $270.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest IBM options trades with real-time alerts from Benzinga Pro.