By Zacks Equity Research
Publication Date: 2026-02-21 08:08:00
Investors in International Business Machines Corporation IBM need to pay close attention to the stock based on moves in the options market lately. That is because the Feb. 20, 2026 $165 Callhad some of the highest implied volatility of all equity options today.
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
Clearly, options traders are pricing in a big move for IBM shares, but what is the fundamental picture for the company? Currently, IBM is a Zacks Rank #3 (Hold) in the Computer – Integrated Systems industry that ranks in the Top 12% of our Zacks Industry Rank. Over the last 60…
