Blue-chip tech name IBM (NYSE:IBM) today launched WatsonX, a new, all-in-one artificial intelligence (AI) tool that will help companies with their AI integration. This announcement comes roughly 15 months after IBM sold its Watson Health unit to Francisco Partners.
IBM stock is brushing off the news, sporting a 10% premarket deficit. On a closing basis, the $122 level has served as a floor since mid March, while the 60-day moving average has kept a lid on the shares since January. Year-to-date, IBM is down 12.4%.
Options traders favored calls ahead of today's news, per IBM stock's 50-day call/put volume ratio of 1.89 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands in the elevated 99th percentile of its annual range. This suggests calls have been the go-to choice in the options pits over the last 10 weeks.
Now looks like an ideal opportunity to speculate on the security's next move with options. IBM stock's Schaeffer's Volatility Index (SVI) of 17% sits in the 6th percentile of readings from the past 12 months, suggesting options are currently affordably priced.
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