Investors in International Business Machines Corp (IBM) began trading new options today, with expiration set for November 2026. Among these, a $300 put contract has a current bid of $30.85, implying a cost basis of $269.15 if exercised, compared to its current share price of $304.67. This represents an approximate 2% discount to the current trading price, with a 60% chance that the put contract may expire worthless, potentially yielding a 10.28% return on cash commitment.
On the calls side, a $315 call contract has a current bid of $32.50, offering a total return of 14.06% if IBM shares are called away at expiration. This contract is approximately 3% above the current price, with a 46% chance of expiring worthless, which would allow investors to keep both their shares and the premium, equating to a 10.67% boost to return. Both contracts have an implied volatility of around 33%, while IBM’s trailing twelve-month volatility is calculated to be 30%.
