IBM's Options: A Look at What the Big Money is Thinking

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 47 uncommon options trades for IBM.

This isn't normal.

The overall sentiment of these big-money traders is split between 48% bullish and 34%, bearish.

Out of all of the special options we uncovered, 33 are puts, for a total amount of $2,704,034, and 14 are calls, for a total amount of $724,026.

Projected Price Targets

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $220.0 to $300.0 for IBM over the last 3 months.

Insights into 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 $220.0 to $300.0, over the past month.

IBM 30-Day Option Volume & Interest Snapshot

Significant Options Trades Detected:

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.

After a thorough review of the options trading surrounding IBM, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Present Market Standing of IBM

• With a volume of 3,639,471, the price of IBM is up 1.6% at $247.9.
• RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
• Next earnings are expected to be released in 23 days.

What Analysts Are Saying About IBM

Over the past month, 1 industry analysts have shared their insights on this stock, proposing an average target price of $265.0.

Turn $1000 into $1270 in just 20 days?

20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access. * An analyst from Jefferies persists with their Hold rating on IBM, maintaining a target price of $265.

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.