IBM reports earnings on Tuesday, January 21st. The stocks has fallen after the last three reports. Implied volatility is lower than it was for the previous two quarters implying a + or – move of $7.81.
For next week, the implied volatility is at 44.6% pricing in a + or – move of $8.30.
This is likely a make or break moment for IBM which has been trying to make a come-back. Above its 200 day moving average at $190 and bulls are in control. If it falls back below $184 then likely show over.
Here is the current open interest for January 24th expiration with the 175 and 180 puts having the largest open interest strikes:
Disclosure: I am long from $185.50 with February options and will take most (maybe all depending on how it acts Tuesday) of my position off before earnings.