On CNBC’s “Options Action,” Mike Khouw of Optimize Advisors said IBM (NYSE:IBM) traded more than two times its average daily volume on Thursday.
This was the case for both calls and puts, Khouw mentioned. However, some of the activity in calls was “actually sellers,” he added.
There were buyers of 2,300 January 14 weekly 135 strike puts for an average price of $1.83 per contract.
“Buyers of those puts are believing the action that we’ve seen over these last two days and that the stock could continue lower between now and the week from Friday,” Khouw said.
Trades are betting IBM could lose at least 2% by Jan. 14.
IBM Price Action: Shares of IBM declined by 2.08% to close Thursday’s session at $135.34.