IBM has become the largest recipient of federal grants aimed at advancing quantum computing, which has sparked significant interest among options traders. On a single day, nearly 200,000 options contracts were traded, representing a volume 15 times higher than the average over the past month.
The trading activity was heavily skewed towards call options, with a ratio of nearly 8:1 in favor of calls over puts. This surge in options trading reflects a belief that the government’s endorsement could catalyze a substantial recovery for IBM, which has seen its stock drop 30% since November amid a broader selloff in cloud services.
Notably, one trader invested $2.7 million in long-dated call options, betting that IBM's stock will rise significantly over the next few years. This situation mirrors the recent turnaround of Intel, which saw its shares rebound dramatically after receiving government support.
Overall, the optimism surrounding IBM's future prospects in quantum computing could signal a potential multi-year growth phase for the company