By Trefis Team
Publication Date: 2026-06-05 13:38:00
Pocket a healthy income stream from IBM today that’s yours to keep, while setting a price far below the current market where you’d be happy to own the shares.
International Business Machines (IBM) has been a study in contrasts, trading near $301.77 a share after a strong quarter that still left it trailing the index’s run over the past year. While investors debate whether the tech giant’s turnaround has truly taken hold, an options trade offers a way to get paid a strong income stream for simply stating the price at which you’d be willing to buy in.
11% annualized yield at a 30% margin of safety, by selling put options
- Sell a put option on IBM expiring 6/17/2027, with a strike price of $210.
- Collect roughly $1,488 in premium per contract (each contract covers 100 shares).
- That works out to about 6.8% annualized on the $21,000 of cash you set aside to secure the trade.
- Park that cash in a money market or savings account earning roughly 4.0%, and your total yield…