IBM enjoyed follow-through buying amid reports of quantum computing progress
Subscribers to Schaeffer's Weekend Trader options recommendation service received this IBM commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.
IBM (NYSE:IBM) stock staged a bullish reversal after slipping to an Oct. 23, post-earnings low near the 50-day moving average. There was follow-through buying the following session, amid reports of quantum computing algorithm progress. Shares then proceed to break out above the $296 level, completing a bullish cup and handle pattern that targets $355.
Analysts remain skeptical of IBM, with 14 of the 22 brokerage firms in coverage sporting a tepid "hold" or worse rating. This means there is plenty of room for upgrades, which would boost the shares. It’s also worth noting that, based on Friday’s options prices, our recommended option doubles before the pattern’s target.
Our recommended January 16, 2026 call has a leverage ratio of 8.3 and will double on a 12% rise in the underlying equity.