Investors in International Business Machines Corp (IBM) have new options available for March 2027, promising potential opportunities in the options market. The $240.00 put contract, with a current bid of $29.15, allows an investor to effectively purchase shares at a cost basis of $210.85, representing a 4% discount from the current trading price of $249.36. Analysts suggest a 63% probability that this contract could expire worthless, providing a potential 12.15% return on cash commitment.
On the call side, the $260.00 strike price call contract has a current bid of $32.20. If an investor sells this contract after purchasing shares at $249.36, they would secure a total return of 17.18% by March 2027, assuming the stock is called away. There is a 47% chance of the contract expiring worthless, which would still allow the investor to retain both the shares and the premium collected. The implied volatility for both the put and call contracts is around 38% and 39%, respectively, while the actual trailing twelve-month volatility for IBM is calculated at 34%.
