Decoding IBM's Options Activity: What's the Big Picture?

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 19 uncommon options trades for IBM.

This isn't normal.

The overall sentiment of these big-money traders is split between 42% bullish and 31%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $66,640, and 17 are calls, for a total amount of $795,217.

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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 $240.0 to $300.0 for IBM during the past quarter.

Volume & Open Interest Trends

Looking at the volume and open interest is a powerful move while trading options. 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 trades within a strike price range from $240.0 to $300.0 in the last 30 days.

IBM Option Volume And Open Interest Over Last 30 Days

Noteworthy Options Activity:

About IBM

Incorporated in 1911, International Business Machines, or IBM, is one of the oldest technology companies in the world. It provides software, IT consulting services, and hardware to help business customers modernize their technology workflows. 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 includes 95% of all Fortune 500 companies. IBM's products, including Red Hat, watsonx, and mainframes, handle some of the world's most important data workloads in areas like finance and retail.

Present Market Standing of IBM

• With a trading volume of 1,374,826, the price of IBM is down by -1.12%, reaching $277.87.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 40 days from now.

What Analysts Are Saying About IBM

A total of 2 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $287.5.

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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 RBC Capital persists with their Outperform rating on IBM, maintaining a target price of $285. * An analyst from B of A Securities has decided to maintain their Buy rating on IBM, which currently sits at a price target of $290.

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.