IBM closed at $219.05, up 3.72%. Large options trades were active, with a notable $23.97 million bullish put spread standing out against a backdrop of overall bearish large-trade flow, which saw a net $11.28 million tilt to the downside.

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Options Indicators

IBM’s implied volatility is 50.63%, and with an IV percentile of 94.42%, current option volatility sits at a clearly elevated level relative to its own historical range, indicating that options are priced expensively rather than cheaply. Even though the IV/HV ratio is 0.45, the high percentile suggests the market is still assigning a rich premium to current option prices versus most of the past year, so buyers are paying up for volatility while premium-selling or defined-risk spread structures may offer better efficiency.

The Call/Put volume ratio is 1.68.

Large Trades

A bullish put spread worth $23.97 million stood out as the largest displayed trade, built by selling 2,650 July 17, 2026 $275.00 puts and buying 1,700 July 17, 2026 $270.00 puts. This is a net-credit structure, typically used to collect premium while expressing a moderately bullish view or a willingness to defend downside risk within a defined range. Both legs were in the money versus the $219.05 reference stock price, which makes the position especially notable as a high-premium, downside-focused strategy rather than a simple out-of-the-money income trade. Strategically, it suggests the trader expects IBM to remain firm enough over time that the short put exposure can outperform, while the long $270.00 puts cap part of the downside risk.

A CALL buy worth $0.45 million added a more straightforward bullish expression, with 1,032 contracts of the August 7, 2026 $225.00 call purchased. This was an out-of-the-money call relative to the $219.05 reference stock price, making it a directional upside bet on further appreciation above the strike before expiration. As a single-leg long call, the trade is a net-debit position that offers leveraged upside participation with limited risk to the premium paid, signaling a cleaner bullish conviction than the spread but on a much smaller notional scale. Overall, sentiment across all large trades leaned bearish, with $24.42 million in bullish flow versus $35.70 million in bearish flow, leaving a net difference of $11.28 million to the bearish side. The directional conclusion is therefore mildly bearish overall, as the displayed bullish trades show selective upside interest and premium-collection confidence, but the broader large-trade flow was still dominated by larger downside-leaning premium-selling activity.

Strategy Reference

Given the elevated IV percentile, a premium seller looking for low assignment probability could consider selling out-of-the-money puts, such as the $200 strike; for a defined-risk alternative, a bull put spread using the $200/$195 strikes would limit margin requirements while still collecting premium in a high-volatility environment.