Blue-Chip Boosted by Second-Quarter Results

No fewer than five analysts raised their price targets

Deputy Editor
Jul 21, 2020 at 11:17 AM
facebook X logo linkedin


The shares of blue-chip IBM (NYSE:IBM) are up 2.9% at $130.18 at last check, after the company reported a positive second-quarter report. The company's revenue and earnings both exceeded analyst expectations, after which, no fewer than five analysts hiked up their price targets -- including Citigroup to $140. Furthermore, the company announced a strategic partnership with Adobe (ADBE) and Red Hat, which focuses on data-driven marketing. 

Today's rise has IBM challenging pressure at the 320-day moving average. Above the $130 region for the first time since mid-June, the equity has added 10% over the past three months, and is eyeing its eighth straight close higher. 

IBM July 21

Analysts came into today hesitant on IBM, with four out of the 11 in coverage at a "strong buy" and the remaining seven at a "hold." Meanwhile, the 12-month consensus target price of $131.56 is slightly above current levels, making this morning's price-target hikes less of a surprise. 

Today's positive report is attracting options traders, with 67,000 calls and 37,000 puts across the tape so far -- 10 times the usual daily volume. Most popular is the weekly 7/24 130-strike call, expiring at the end of this week, where new positions are being opened.  

Options may not be a bad way to go at the moment, either, as IBM is seeing attractively priced premiums. The stock's Schaeffer's Volatility Index (SVI) of 34% stands higher than 23% of all other readings in its annual range, implying that options players are pricing in relatively low volatility expectations at the moment. 

 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI