IBM Stock Gaps Lower on Slowing Software Revenue Growth

Core Insights - IBM's stock has declined by 3.9% to $276.87 despite reporting a third-quarter revenue and earnings beat, primarily due to signs of deceleration in software revenue growth [1] - Analysts have adjusted their price targets, with BofA Global Research raising its target from $310 to $315 [1] - The stock is on track for its worst daily performance since July, although it maintains a 25% year-to-date gain [2] Trading Activity - The call/put volume ratio for IBM has been notably high at 1.94, indicating increased interest in call options compared to puts, ranking higher than 81% of readings from the past year [3] - Today, 61,000 calls and 42,000 puts have been traded, which is six times the average daily rate, with the most popular option being the weekly 10/24 270-strike put [4] - IBM's Implied Volatility Metric (IVM) is expected to outperform volatility expectations, as indicated by a Schaeffer's Volatility Scorecard (SVS) score of 95 out of 100 [4]