IBM Options Collapse, Analysts Split After Historic 25% Plunge
IBM is trading near its 52-week low of $212.34 (3.1% above the low) on elevated volume (6.8× avg).
Summary
IBM's Q2 pre-announcement and historic 25% single-day wipeout on July 14 are now rippling through options and analyst desks. The $300 call open interest collapsed to a $0.01 bid, while the $275 put surged to $52.60, reflecting extreme bearish repositioning. Analyst reactions are sharply divided: Morgan Stanley and Oppenheimer raised price targets to $293 and $350, respectively, while HSBC cut to Reduce with a $191 target. The dividend yield has spiked to ~3.1% from 2.2% as the stock slid, though trailing free cash flow of ~$13B still covers the ~$6B annual dividend. Pre-market on July 15, shares are near two-month lows, extending the rout. This follows yesterday's warning that customer spending is pivoting from software to AI infrastructure, causing major deal slippage and margin pressure. The options market is pricing in further downside, with put activity dominating.
At the time of this announcement, IBM was trading at $218.92 on NYSE in the Technology sector, with a market capitalization of approximately $204B. The 52-week trading range was $212.34 to $332.46. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Wiseek News.