thetaOwl

IBM

International Business MachinesClose $225.00EOD only
Max Pain
$220.00
Next expiry May 22, 2026
Expected Move
±$5.32
2.4% from close
Price Gap
-5.00
Distance to max pain
IV Rank
2
Low premium
P/C OI
0.84
Slightly call-heavy
Consensus
4/4
Partial coverage
Published snapshot: May 20, 2026 close
End-of-day snapshot

This page reflects IBM options positioning from the latest published market-close snapshot. Intraday price and contract changes are not displayed.

Published Snapshot
May 20, 2026 close
IBM Theta Report
Analysis based on market close March 31, 2026

Historical consensus-supported lens with full content, report chain context, and metric rail.

Theta Verdict

Attractiveness6.5 / 10
Sizing: Moderate
Primary: Sell put spreads near major OI support levels, targeting 30-45 DTE.
Invalidation: Close all positions on a sustained break below $235 (key OI support).
Confidence:
5 / 10
base 4; +1 pinning regime; +1 normal/rich IV; -1 bearish flow; -0 low liquidity

IV Environment

IV Regime
Normal/Rich
IV vs VIX
IV 42.3% — Elevated for a large-cap stock like IBM.
Favorable?
Yes

Term structure: Humped at 4/24 (47.9%) and 5/01 (46.4%), offering rich premium in the 30-45 DTE range.

💰IV ~42% provides attractive credit for sellers.
📊Term structure hump at 4/24 & 5/01 offers high theta decay potential.

Pin Risk Assessment

Spot vs MP: Below max pain by 2.1% (spot $242.39 vs MP $248).

GEX regime: Pinning (GEX +$1.6M — mean-reverting).

Gamma flip: ~$190.00Gamma flip is far below at ~$190. Current positive GEX supports a pinning/range-bound environment near spot.

OI concentrations: Major put walls at $190 (4,636 OI) and $240 (3,680 OI). Major call wall at $275 (5,353 OI).

Verdict: Favorable — Positive GEX and OI concentrations suggest a bounded range between $240 and $275, supporting credit strategies.

Premium Opportunities

#1
put spread
Sell $240/$235 Put Spread exp 2026-05-01 (31 DTE)
Targets the major $240 put OI support (3,680 OI) in a pinning regime. Uses the rich IV (46.4%) in the 31 DTE expiration. Defined risk with a high probability of success if price holds above $240.
Credit: $0.85-$1.10
Max loss: $4.15
BE: $239.15
Mgmt: Close at 65% profit (~$0.71 credit). Roll down/out if $240 is breached. Exit for a loss on a daily close below $235.
#2
iron condor
Sell $235/$230P x $260/$265C Iron Condor exp 2026-05-15 (45 DTE)
Capitalizes on the pinning range defined by OI ($240P, $275C) and positive GEX. Wide breakevens ($233.60-$261.40) vs. expected move of ±$28.82 (11.9%). Collects rich premium from 43.2% IV.
Credit: $1.40-$1.80
Max loss: $3.60
BE: 233.60 / 261.40
Mgmt: Close at 50% profit. Manage wings independently; roll tested side if other side is untouched. Exit entire position if spot breaches $230 or $265.
#3
cash-secured put
Sell $230 Put exp 2026-06-18 (79 DTE)
For capital-secure sellers willing to own IBM. Strikes below the massive $190 OI wall and near the $230 call OI level. High absolute credit from 39.6% IV with a 6.5% buffer below spot.
Credit: $4.50-$5.50
Max loss: $225.50
BE: $225.50
Mgmt: Roll down/out at 21 DTE if challenged. Close at 70% profit. Accept assignment below $230 if comfortable with cost basis.
#4
call credit spread
Sell $260/$265 Call Spread exp 2026-04-24 (24 DTE)
Defined-risk bearish play against the $275 call wall, aligned with bearish flow data (net premium -$14.1M). Sells into the richest IV point (47.9% at 4/24) for accelerated theta decay.
Credit: $0.65-$0.85
Max loss: $4.35
BE: $260.65
Mgmt: Close at 65% profit. Exit on a daily close above $260. Do not hold through earnings on 4/22.

Risk Alerts

!Earnings on 2026-04-22 (approx. 3 weeks). Close all short premium positions before this announcement. IV will crush post-earnings.
!Bearish Flow Regime: Net premium -$14.1M and P/C volume 1.56 indicate institutional put buying. This is a headwind for put sellers.
!Low Liquidity: Total OI 269k and volume 17k are moderate. Expect wider bid-ask spreads, especially on multi-leg orders. Use limit orders.
!Unusual Put Activity: Large blocks of $285 & $290 puts for 4/17 exp. Could indicate a large bearish hedge. Monitor for follow-through selling pressure.
!Gamma Flip at ~$190 is far below, but a break below key OI support at $240/$235 could lead to a faster move toward the next support.
How to Use These Reports
This theta reflects the market close on March 31, 2026.
What the reports do

Each report translates the same market-close options snapshot into a specific lens such as directional bias, premium-selling posture, flow quality, or earnings setup.

How traders use them

Reports are most useful for narrowing the playbook, surfacing entry and risk context, and deciding which raw data page to inspect next.

What to remember

These are interpretation layers, not execution guarantees. Validate the setup against chain liquidity, expected move, and exposure before sizing risk.

If the report conviction and the raw data disagree, slow down and resolve the mismatch before sizing risk.