IBM

Last Close 223.25
(EOD 12/20/2024)Earnings Jan 22Ex Div Nov 12
International Business Machines Corporation
Information Technology Services
mkt cap212.0B
avg vol4.2M
div yield0.7%

As of December 20, 2024, IBM (International Business Machines Corporation) has opportunities for wheel options strategy trades and covered call trades in the next six weeks.

IBM Top Wheel Trades (Cash-secured Puts)
ExpirationStrikePremiumReturnAnn Return
Dec 27222.52.00.9%59%
Jan 03222.53.691.7%53%
Jan 31225.07.233.2%31%
Jan 17225.04.331.9%28%
Feb 21225.09.584.3%27%
Jan 10225.03.081.4%26%
Mar 21225.011.785.2%22%
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IBM Top Covered Call Trades
ExpirationStrikePremiumReturnAnn Return
Dec 27222.52.631.2%84%
Jan 03222.54.031.8%59%
Jan 10225.04.92.2%45%
Jan 31225.09.64.3%43%
Jan 17225.05.232.3%34%
Jan 24225.06.182.7%32%
Feb 21225.011.235.0%32%
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Explore more expirations, adjust parameters, and more for IBM and thousands of other stocks with our wheel strategy option scanner.

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Is IBM a Good Wheel Stock?

Many factors determine whether or not a particular stock is a good candidate for the wheel strategy. Read our guide on choosing the best wheel stocks. Ultimately, it is best to familiarize yourself with the wheel strategy and determine which criteria work best for your trading method. However, it is generally accepted that there are several key criteria to consider when evaluating a stock as a wheel candidate. Here is how IBM stacks up:

Good Wheel StocksIBM
Market Cap > $10BYes
Mid-Range VolatilityYes
Good LiquidityYes
Offers DividendsYes
How to Find the Highest Premiums on IBM

Generally speaking, the further the expiration date is in the future, the higher the premium will be because of the time value of the contract. Options lose value as they approach expiration, a process known as theta decay. However, there are instances where a stock may have options premiums that are abnormally high. This can be due to an earnings announcement, an ex-dividend date, or other factors.

The Premium Pirates High Returns Option Scanner is the fastest and easiest way to find the highest premiums on IBM and thousands of other stocks.

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How to open a IBM wheel campaign

You can open a IBM wheel campaign by selling a cash-secured put, at which point your broker will hold 100 times the value of the strike price of every contract you sell as collateral. Or, you can open a IBM wheel campaign by buying 100 shares of IBM and selling a covered call per covered call contract.

Whenever you have open risk on a symbol, the campaign is considered “open”. The campaign is “closed” when your open risk goes to $0.

How to Track the Performance of IBM Campaigns

Tracking the performance of a wheel campaign or a covered call can be difficult because your broker only wants to show changes in the underlying asset's price. It cannot account for the “premium” or income you captured by selling the contract. Many wheel strategy traders resort to trying to track their campaigns through a tool that wasn’t designed for it, which is clunky. More commonly, they resort to tracking their wheel campaigns via spreadsheet, which is time-consuming and subject to errors.

Premium Pirates has automated campaign tracking specifically designed for the wheel strategy that allows you to track premiums over time, open risk, and a number of other things about your wheel campaigns. Try it for free at any time.