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 30% bullish and 70%, bearish.
Out of all of the special options we uncovered, 3 are puts, for a total amount of $100,170, and 7 are calls, for a total amount of $295,432.
Expected Price Movements
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $130.0 and $170.0 for IBM, spanning the last three 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 $130.0 to $170.0, over the past month.
IBM Option Activity Analysis: Last 30 Days
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| IBM | CALL | TRADE | BEARISH | 04/19/24 | $160.00 | $96.9K | 2.5K | 4 |
| IBM | CALL | SWEEP | BEARISH | 02/16/24 | $155.00 | $54.2K | 4.0K | 68 |
| IBM | PUT | SWEEP | BULLISH | 07/19/24 | $165.00 | $39.3K | 150 | 41 |
| IBM | CALL | TRADE | BEARISH | 04/19/24 | $130.00 | $33.9K | 132 | 10 |
| IBM | PUT | SWEEP | BULLISH | 12/22/23 | $162.50 | $30.6K | 594 | 529 |
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.
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 1,344,464, the price of IBM is down -0.1% at $164.55.
- RSI indicators hint that the underlying stock may be overbought.
- Next earnings are expected to be released in 42 days.
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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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