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

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 33 uncommon options trades for IBM.

This isn't normal.

The overall sentiment of these big-money traders is split between 42% bullish and 45%, bearish.

Out of all of the special options we uncovered, 9 are puts, for a total amount of $706,919, and 24 are calls, for a total amount of $1,355,953.

Expected Price Movements

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $165.0 to $310.0 for IBM during the past quarter.

Insights into Volume & Open Interest

In today's trading context, the average open interest for options of IBM stands at 900.48, with a total volume reaching 3,094.00. 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 $165.0 to $310.0, throughout the last 30 days.

IBM Option Volume And Open Interest Over Last 30 Days

Largest Options Trades Observed:

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.

Having examined the options trading patterns of IBM, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

Present Market Standing of IBM

• With a volume of 1,795,117, the price of IBM is up 0.37% at $262.44.
• RSI indicators hint that the underlying stock may be overbought.
• Next earnings are expected to be released in 58 days.

What The Experts Say 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 $267.6.

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 JP Morgan persists with their Neutral rating on IBM, maintaining a target price of $244. * An analyst from Morgan Stanley persists with their Equal-Weight rating on IBM, maintaining a target price of $228. * Maintaining their stance, an analyst from RBC Capital continues to hold a Outperform rating for IBM, targeting a price of $276. * Maintaining their stance, an analyst from Jefferies continues to hold a Hold rating for IBM, targeting a price of $270. * An analyst from Oppenheimer has revised its rating downward to Outperform, adjusting the price target to $320.

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.